Discuss two causes of Centre-state conflict
Answers
Explanation:
In some cases the entire revenue is allocated among the States. But the rates and bases are wholly decided by the Centre regardless of the policies and desires of the States. This is virtual spoon-feeding of the States by the Centre.
2. Secondly, it is felt that the Centre has failed to take sufficient initiative to impose all the taxes as per Article 269, the entire net proceeds of which are supposed to be appropriated by the States.
ADVERTISEMENTS:
3. The States make notable contribution to the development of the private corporate sector. They provide an integrated infrastructure for industrial development in the form of power, water, roads, land, factory sheds and even raw materials. Moreover, the State Governments have to provide huge amount of financial incentives and concessions to attract industries. Yet they were excluded from sharing the revenue of such taxes. This is unjust and unfair.
4. The Centre has replaced certain items, previously subject to State sale tax, by various excise duties. The wider coverage given to excise duties has added to the financial hardship of the States.