West Bengal Chief Minister Mamata Banerjee on Friday said that her Government was ready to provide “full relief” to the common people and farmers who were hit by an increase in diesel price and restriction of subsidised LPG. However, she maintained that the State should be allowed to collect taxes that have so far been taken away from Centre.
“My State is very much willing to provide full relief to the common people and farmers affected by the increase in prices of domestic LPG and diesel. But at the same time, Centre must allow State to collect all taxes, now taken away by the Centre. This will enable the State to provide full relief and subsidy,” she wrote on her Facebook page.
According to Banerjee, in a federal structure, the Centre is supposed to make policies and impose taxes. But it is the Centre which takes away the lion’s share – 70 per cent – of the tax proceeds so collected by the States. This left behind a “meagre 30 per cent” for utilisation by States.
“As per the present formula, our State receives only 2.3 per cent of the total taxes collected by the Centre,” she wrote.
In order for the federal democracy to flourish, the “voice of the State must be heard and the tax resources raised must be left to the State,” to ensure that development work carried out by the States receive a boost, the Chief Minister maintained.
“In a democracy, the Centre should not treat itself as an Upper House; the State, as the Lower House, is directly connected to the roots and feels the pulse of the interest of the common people and farmers. One should remember, if the kitchen is hurt, the woman is hurt, then the people at large, become stronger to bring about change,” she said.
Calling for return of black money into the system, Banerjee said that instead of continuing to burden the common people by increasing tax on petro products to raise resources; a large number of 'benami' assets and funds need to be unearthed which can be used for development purposes.
“Instead of continuing to burden the farmers and common people… the Centre should now start thinking of utilising large amount of black money lying in the country and abroad,” she wrote on her Wall Post.
Late on Thursday night, Banerjee had written on her Facebook page that she was “shocked” to hear about the increase in diesel prices by Rs 5 a litre and imposing a restriction on the usage of six LPG cylinders at subsidised rate a year.
She had called the decision “anti-people” and said that “it will severely affect the interest of farmers and common people”. She also called for the immediate “withdrawal of the decision” keeping in mind the interest of the farmers and common people.