KPCC protests in Delhi demanding higher tax share to state

New Delhi: Karnataka State Congress Legal Cell members staged a protest here on Friday demanding that the share of taxes devolved to States (vertical devolution) be increased to at least 50 per cent, and cess and surcharges be capped at 5 per cent in the 16th Finance Commission (FC).

For every rupee Karnataka contributes to the Union taxes, it receives only 15 paise in return. The reduction in Karnataka’s share under the 15th FC from 4.713 per cent to 3.647 per cent has resulted in a cumulative loss of over Rs 80,000 crore during the award period, the protesters alleged.

More than 200 protestors, who came from Karnataka, staged a dharna at Jantar Mantar here.

Karnataka played a pivotal role in India’s economic growth, contributing nearly 8.7 per cent of the national GDP with just 5 per cent of the population. It ranked second in GST collections, Legal and Human Rights Cell chairman C M Dhanjaya said addressing protestors.

Karnataka’s Delhi Special Representative T B Jayachandra said, “

Karnataka’s per capita devolution has dropped significantly, from 95 per cent to 73 per cent of the national average between the 14th and 15th Finance Commissions, despite increased GDP contribution.”