Delhi Set To Get Share In Central Taxes

This amount will also include the compensation that Delhi government is to get from the Union government for levying additional excise duty on tobacco, sugar and textiles. State finance secretary K S Baidwan is engaged in discussions with senior finance ministry officials at present. Finance ministry officials are working out the exact figure which will have to be transferred.Sources said a formal decision is expected by the month-end, after which the Centre would issue a notification. While the ban on lotteries has subsequently been lifted following a Delhi High Court order, the revenue being collected by the state has failed to look up since the trade is being carried out at a very low scale.

 

A committee headed by former planning commission member-secretary Arjun Sengupta had suggested that Delhi should be treated as a full-fledged state, even in matters relating to finance. The committee had also suggested that Delhi be allowed a share in the central taxes.

Delhi, unlike other states, does not have its consolidated account with the Reserve Bank of India. Moreover, the Delhi government is not allowed to change the rates of sales tax levies without the prior consent of the Union home ministry.

For example, even though last month