States deprived of cess tax collections, says TMC MP
Times of India | 5 September 2025
New Delhi: Trinamool MP Derek O'Brien on Thursday said states don't get their share in cess tax collections and this was equal to "loot". In a post on X, the Rajya Sabha member said the cess, a tax levied for promoting services like health and education, makes up 26% of Gross Tax Revenue.
"Cess = Loot. Cess goes directly to Union Govt. Cess is not shared with states," O'Brien wrote. "In 2011, of the total percentage of Gross Tax Revenue, 10 per cent was cess. In 2022, that moved to a huge 26 per cent. States are being deprived! Loot 10 percent to 26 percent," he posted.
O'Brien's remarks came a day after the GST Council approved a two-tier rate structure of 5% and 18%, which will be implemented from Sept 22.
TMC MP Mahua Moitra recalled the role of Bengal CM Mamata Banerjee as Centre decided to exempt individual life and health insurance from GST.
Moitra mentioned that Banerjee had written to finance minister Nirmala Sitharaman to exempt GST on life and health insurance.
"Didi @MamataOfficial wrote to FM @nsitharaman on Aug 2, 2024, urging withdrawal of 18% GST on life & health insurance policies. FM has finally done it, albeit to offset the pain from friend Doland's 50% tariffs. @AITCofficial continues to fight anti-people policies," Moitra posted on X.
On Wednesday, after Centre's GST announcement, Trinamool said in a statement: "A victory for common people. A victory wrested from a tone-deaf regime that only listens when forced."