States don't get share in cess, this is equal to loot: Derek O'Brien

New Delhi, Sep 4 (PTI) Trinamool Congress MP Derek O'Brien on Thursday said states don't get their share in cess tax collections and this is equal to "loot".

In a post on X, the Rajya Sabha member said that the cess, a tax levied for promoting services like health and education, makes 26 per cent of the Gross Tax Revenue. He said states do not get a share in it.

"Cess = Loot. Cess goes directly to the Union Govt. Cess is not shared with States," O'Brien wrote.

"In 2011, of the total percentage of Gross Tax Revenue, 10 percent was cess. In 2022, that moved to a huge 26 percent. States are being deprived! Loot 10 percent to 26 percent," he said.

His remarks come a day after the GST Council approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.

Earlier, opposition-ruled states had voiced concern about the revenue implications of the rationalisation and sought a compensation mechanism. However, in the council meeting, the states came together and decided to reduce tax rates for the common person. PTI AO ZMN