💥UPSC 2026, 2027, 2028 UAP Mentorship (Feb Batch) + Access XFactor Notes & Microthemes PDF
February 2026
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Tax Reforms

Tax contribution by States needs to be revisited

Note4Students

From UPSC perspective, the following things are important :

Prelims level: 16th Finance Commission

Mains level: inclusion of tax contribution, particularly from Goods and Services Tax (GST) and petroleum consumption, as a significant efficiency indicator in the distribution formula used by Finance Commissions to allocate Union tax revenue among states.

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