Guwahati, Sept 26: Assam Chief Minister Himanta Biswa Sarma met with Arvind Panagariya, Chairman of the 16th Finance Commission, on Thursday to express concerns over the decline in tax devolution for Assam.

Sarma attributed the decline to neighboring states’ lower taxes on petroleum products and liquor, which the Finance Commission compensates for, resulting in revenue loss for Assam.

“The continual decrease in Assam’s share of devolution since the 13th Finance Commission is a matter of concern,” Sarma said.

The Assam government proposed a tailored approach to devolution criteria for each state, differing from the 15th Finance Commission’s uniform 15% allocation. Instead, Assam suggested reducing this to 10%.

Panagariya acknowledged the merit in Assam’s suggestions on various monetary issues.

The 16th Finance Commission is currently on a four-day tour in Assam to discuss financial matters with state officials and visit key sites.

This meeting is crucial for Assam, as the state seeks to address its revenue concerns and find a solution to the declining tax devolution.

The state government hopes that the Finance Commission will consider its proposals and provide a more equitable share of tax devolution.