Datanomics: Centre unmoved even as states call for capping cess, surcharge

Centre unmoved even as states cry for capping cess, surcharge

At a time when states are demanding a higher portion of the divisible central tax pool, the Union government may keep around ₹28,000 crore with itself by raising the cess on petrol and diesel as global rates soften. 

At their interactions with the 16th Finance Commission, various state governments, including those run by the National Democratic Alliance NDA, have demanded an increase in their share to 45-50 per cent of the divisible tax pool from the current 41 per cent and capping cess and surcharge or including them in the common pie. 

It is a bit puzzling to decipher the