States seek increased share of central taxes to at least 50%

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New Delhi: States on Friday asked the government to raise their share of central taxes to at least 50% from the present 30.5% and include central surcharges and cess in the divisible pool.

“In a presentation before the 13th Finance Commission, states have demanded that share of gross Central taxes to states should be increased to at least 50%, Central surcharges and cess should be included in the divisible pool," the government said in a written reply to the Lok Sabha.

Finance Commission recommends the rate at which the states share the central taxes. At present, it is in accordance with the recommendations of the 12th Finance Commission. The award period for the commission was 2005-10.

The states have also demanded an additional devolution which be considered for distribution of the central taxes among Northeastern and special category states.

The criteria the government adopts for sharing these taxes and other duties among the states is based on the states population, area, income and also the fiscal discipline it maintains, the government said.