Excise duty helps fill Centre’s fiscal gap

  What is the News? According to the data from the Controller General of Accounts (CGA), Excise duty mostly from petrol and diesel has helped the government overcome a major gap in its revenue in FY21. How much tax do we pay on petrol and diesel? The Union government levies excise duty and cess on… Continue reading Excise duty helps fill Centre’s fiscal gap

Towards a more federal structure

Why India needs better tax sharing mechanism between Center and States?  Context:  The current policy of tax sharing between center and states will increase the regional differences.   Current policy of Tax sharing mechanism in India:  In India, direct taxes go entirely to the Central government. State governments get funds from the Central government according to the Finance Commission’s recommendations. Though this is… Continue reading Towards a more federal structure