Bengal finance minister Amit Mitra on Tuesday called the current structure of the central government not sharing cess and surcharge with the states as “anti-federalist” and urged state governments to raise this issue.

Mitra’s observations come at a time the 15th Finance Commission chaired by N.K. Singh has recommended a decrease in the share of states in the centre’s taxes from 42 per cent to 41 per cent for 2020-21 with the 1 per cent decrease utilised to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh.

Mitra said that while the states get a share of the taxes, the central government has been increasing the rates of cess and surcharge even as the states were getting squeezed with a lower devolution and a low tax collection.

“States do not get a share of cess and surcharge. They only get the share of taxes. In my view it is an anti federalist action. Federalism means that you share. But that’s not the case,” Mitra said at a CII organised event. He added that the states should be raising this issue.

The matter of devolution of taxes falls in the ambit of the Finance Commission and the 15th Finance Commission is yet to give its final report for 2021-26 period, which expected by October 30, 2020.

Mitra also said that even though the Centre has released some of the due GST compensation a few days ago, the state is unlikely to get any further compensation in the next two months. “It is a constitutional right of the states to be paid. We still have payment due to us and my deep concern is in February and March, we will not be paid,” said Mitra.