Cess and surcharge continue to shrink States’ tax share
Of every ₹100 that the Union government collects as tax, ₹10-11 is collected as cesses and surcharges, a trend unchanged since the pandemic year 2020-21. Also, the government spends ₹1-2 in collecting every ₹100 of tax; this is called the cost of collection. The amount collected as cesses and surcharges, along with the cost of…