Chennai: Tamil Nadu assembly unanimously passed a resolution on Friday seeking fair devolution of central taxes to the state. The resolution moved by state finance minister N Marie Wilson insisted that devolution of central taxes should be based on principles of equity and fairness.All states that implemented population stabilisation and human development initiatives should not be pushed into a disadvantaged position in tax devolution, said the resolution supported by DMK and AIADMK. “Adopt a transparent, objective and equitable methodology for the devolution of central taxes that appropriately recognises the contribution, physical effort, governance, performance and developmental needs of the state,’’ said the resolution.During the discussion on the resolution, former finance minister Thangam Thennarasu welcomed the resolution, but said the resolution should demand a 50% share in central taxes instead of remaining silent on the quantum of increase.He said the issue was not limited to finance but was key to preserving India’s federal structure and protecting the constitutional rights of states.Arguing that Tamil Nadu was being penalised despite its economic performance, Thennarasu said the state contributed nearly 9% of the country’s GDP and 11% of its exports while remaining among the top performers in manufacturing, human development and women’s workforce participation. Yet, Tamil Nadu continued to receive a disproportionately lower share of central taxes, he said.He said Tamil Nadu received only 29 paise for every rupee contributed to the Union, while Uttar Pradesh received ₹2.73 and Bihar ₹7.06. “We are not against supporting other states. But why should Tamil Nadu repeatedly be denied its rightful share?” he asked.He also attacked the Union govt’s growing dependence on cess and surcharge collections, which are kept outside the divisible tax pool, arguing that it had steadily eroded states’ revenues.The resolution was passed unanimously as members of other opposition parties also extended their support to it.
