Lucknow, 4 June (IANS). 16th Finance Commission Chairman Arvind Panagariya said on Wednesday that the attempt to collection of Uttar Pradesh is quite good.
Talking to the media after the meeting of the 16th Finance Commission in Lucknow, Panagariya said that the Uttar Pradesh government has also made some recommendations on the basis of tax division between the central and state governments.
Panagariya said that the Uttar Pradesh government has suggested that the weight of demographic demonstration in tax division should be reduced from 12.5 percent to 7.5 percent, the weight for forest and ecology should also be reduced from 10 percent to 5 percent and tax collection effort should be increased from 2.5 percent to 10 percent.
Chief Minister Yogi Adityanath was also present in the 16th Finance Commission meeting. On this occasion, the UP government also showed a presentation to the Commission.
The Finance Commission is formed every five years to decide the sharing of taxes in the Center and the states.
The 16th Finance Commission has been formed to decide the sharing of taxes in the Center and states from FY 2026-27 to FY 2030-31.
The Finance Commission had earlier held a meeting in Ranchi, the capital of Jharkhand.
The Jharkhand government has demanded the 16th Finance Commission to increase the stake in the taxes of the states to 50 percent. Under the 15th Finance Commission, states are given 41 percent share in taxes.
The chairman of the 16th Finance Commission said that the state has also given suggestions for how to divide taxes. The state government says that 17.5 percent of the taxes on the basis of population, 15 percent on the area basis, 50 percent on the basis of per capita income i.e. as much as the less income, the higher tax, the 12.5 percent share on the basis of the forest, 2.5 percent on the basis of the forest and the remaining 2.5 percent should be given on the basis of how much striving.
-IANS
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