Chandigarh, October 16, 2024 (Yes Punjab News)
Punjab Finance Minister Advocate Harpal Singh Cheema on Wednesday emphasized the need to continue the GST compensation cess, considering the state’s financial position and current GST structure.
Participating in the meeting of Group of Ministers (GoM) on restructuring compensation cess through video conferencing, the Finance Minister Harpal Singh Cheema said that the cess levied on sin goods and luxury items with inelastic demand, is crucial for Punjab’s revenue. However, he also highlighted the importance of self-reliance among states in generating taxes.
Regarding excess cess collection, Punjab proposes distributing it among states based on a proper mechanism that ensures equitable distribution to states in need. He stressed that this will strengthen the federal structure and make states self-reliant. He also focused on identifying states that need such compensation and deciding parameters aimed at equitable distribution of cess proceeds to these states.
The Minister’s proposals aim to strike a balance between maintaining revenue streams and fostering self-sufficiency among states.
