[PreludeSH]

Originally Posted by DigitalOne

A state's revenue consists of State GST (SGST) and what it gets as distribution from the Central pool. If you make Bihar tax-free for all vehicles, then they will not earn a single rupee of SGST and center will have to foot 100% of Bihar's expenditure. Do you really want that ?

Just vehicles are tax free not everything else

Its OT but when there are lot of affirmative differences (), we cannot expect equal implementations across country (which is what I wanted to highlight).

[wocanak]

Originally Posted by DigitalOne

Should individual regions get to keep the taxes they generate?

These are tough policy decisions and should not be trivialized by showing misleading statistics. Giving back the entire revenue generated by a state/region back to the state/region will just make the underdeveloped states/regions fall back more and more.

I don't think anyone is saying individual regions should keep what they collect, also agreed that these are tough policy decisions. But is it reasonable for the disparity in distribution to be 50x (if we assume 1:0.13 and 1:7.06 are correct)?

[DigitalOne]

Originally Posted by wocanak

...also agreed that these are tough policy decisions. But is it reasonable for the disparity in distribution to be 50x (if we assume 1:0.13 and 1:7.06 are correct)?

Agreed that it doesn't look 'reasonable' or 'fair' at first, but if you read the sources I linked and how the formulas for distribution the central pool is arrived at, you will note that these are multi-year policies.

For instance, the 14th Finance commission was formed before the current government took over in 2014. The 15th commission recommendations have been followed since 2021 and will be followed till 2026. In between, there has been Lok Sabha elections and mulitple state elections. Notwithstanding what the political alignments and realignments happen(ed) between 2021-2026, the formula doesn't change.

We often think in terms of this or that political parties or allies and such but the well-defined formulas to arrive at this percentage are typically beyond politics i.e. terms of the central govt or their allied state government doesn't coincide with the Finance Commission.


As long as the long-term incentives, for example, "demographic control" and "Tax effort", are being pursued by the states we will get to the desired outcomes in a few years.

[DigitalOne]

Originally Posted by DigitalOne

We often think in terms of this or that political parties or allies and such but the well-defined formulas to arrive at this percentage are typically beyond politics i.e. terms of the central govt or their allied state government doesn't coincide with the Finance Commission.

Apologies for successive posts.

Here are the links I could find for how the central taxes were distributed, as per well-defined formulas, in the last 5 years: 2019-20, 2020-21,2021-22, 2023-24.

You will notice that despite multiple political events the allocation % has not changed for any state significantly.

[shreyak_ss]

Originally Posted by drsachin

https://www.pressreader.com/india/mi...81857238773819

As per this ruling of court all hybrids brought in UP since EV policy 2022 should receive Road Tax refunds.

I came across an Instagram post as well stating this, not that it’s a reliable source. My context here being that we had purchased a UP registered Hycross paying big bucks in road tax only to know that it has been waived 2 months after. In accordance with the UP EV policy of 2022 which was also discussed on this forum briefly, and this link posted above, can we contest this road tax paid and get a refund? I’m confident there would be many others in the same boat. I am also posting the still active link of EV policy from 2022.

https://www.team-bhp.com/forum/elect...ps-buyers.html (Uttar Pradesh announces 2022 EV policy with sops for buyers)

https://www.livemint.com/industry/th...284605774.html

https://invest.up.gov.in/wp-content/...t_1_160423.pdf


Or is it just wishful thinking now?

[volkman10]

After UP, now Karnataka plans tax waivers for hybrid cars.



Link: (Karnataka plans tax waivers for hybrid cars, incentives for electric vehicles)