Cess 'slitting throat of federalism': Derek O'Brien
GST
Dated:- 5-9-2025
PTI
New Delhi, Sep 5 (PTI) Trinamool Congress Rajya Sabha leader Derek O'Brien on Friday said the cess going to the Centre is “slitting the throat of federalism”, and noted that several states have voiced concern over the shrinking divisive pool of tax revenues.
In a blogpost, the TMC Rajya Sabha Leader said, “In all the hoopla about GST, the four-letter word which is slitting the throat of federalism is CESS”.
“Funds collected as cess go 100 percent to the Union government. Not a rupee is shared with the State governments,” he said.
O'Brien said in 2012, cess formed 7 per cent of the Union government's total tax revenues, while in 2025, cess is estim
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(over Rs 2 lakh crore).
Cess is imposed as an additional tax besides the existing tax and the proceeds may or may not be shared with the states.
A divisible pool is a portion of Gross Tax Revenue distributed between states and Centre. It comprises all taxes except surcharges and cess levied for specific purpose.
O'Brien also quoted former West Bengal Finance Minister Amit Mitra, and said GST rationalisation is a good step, provided the common people get the benefit, also pointing out that an anti-profiteering committee that ensured the lower GST would be passed on to the consumers, has been discontinued.
“Second, there also remains the question of how states will be compensated. Eleven ministers in the GST Council had asked for compe
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