House adopts resolution urging Centre for equitable tax share

CHENNAI: The Assembly on Friday adopted, by voice vote, a resolution urging the Union government to adopt an equitable method for the devolution of central taxes and take appropriate measures to safeguard the legitimate financial interests of the State.

The resolution was moved by Finance, Planning and Development Minister N Marie Wilson, who said an equitable system of financial devolution was essential to enable States to discharge their constitutional responsibilities effectively.

Emphasising the need for fair devolution of central taxes, Wilson said the distribution should be based on the principles of equity, fairness, fiscal effort, governance performance and the developmental requirements of the States.

The resolution urged the Union government to ensure a transparent, objective, and equitable methodology for the devolution of Central taxes that appropriately recognises the contributions, fiscal efforts, governance performance, and developmental needs of the States.

"The Union government should also ensure that the criteria adopted for tax devolution do not place any state at a comparative disadvantage on account of its achievements in population stabilisation and human development," the resolution stated.

It further urged the Union government to take appropriate measures to safeguard Tamil Nadu's legitimate financial interests.

The resolution was adopted by voice vote. Before its adoption, DMK member and former Finance Minister Thangam Thennarasu and AIADMK general secretary and former Chief Minister Edappadi K Palaniswami welcomed the move and expressed support for the resolution. During his speech, Thangam Thennarasu moved an amendment to this resolution. He said the Union government should share 50 per cent of the financial devolution, and Tamil Nadu should also receive appropriate financial devolution from the Union Government. But the amendment was not considered and was adopted by voice vote.