Tamil Nadu Assembly urges centre for fair tax devolution

The Tamil Nadu Legislative Assembly unanimously adopted a resolution on Friday, August 7, 2026, urging the central government to ensure a fair and equitable system for distributing national tax revenues to states. The resolution, moved by state Finance Minister N. Marie Wilson, passed by voice vote with support from all parties, including the main opposition DMK and the AIADMK.

The measure calls on the Union government to guarantee that Tamil Nadu receives its due share of financial devolution from taxes collected nationally, in line with constitutional principles of fiscal federalism, equity, and fairness. It specifically requests the adoption of a transparent and objective methodology that recognizes each state's economic contribution, fiscal effort, governance performance, and developmental needs. A key provision argues that states achieving success in population stabilization and human development initiatives should not be penalized in the allocation formula.

In presenting the resolution, Finance Minister Wilson highlighted Tamil Nadu's significant and sustained contribution to the national economy through industrial growth, exports, and sound fiscal management. She stated...