Leader of the Opposition Edappadi K. Palaniswami said in the Assembly on Thursday that it was important that the quantum of personal income tax collected from a State is taken into account while determining the share of devolution to that State.
He said that there was a need to amend the existing system of devolution in accordance with the changing times.
In his speech during the debate on the motion of thanks for the Governor’s Address to the Assembly, Mr. Palaniswami said that linking personal income tax with devolution would serve as an encouragement to States where the collection of income tax was high. It was necessary for the State government to take such initiatives, he said, pointing out that fiscal federalism was among the key issues between the Central and State governments.
