Mamata-Centre clash over tax reforms

West Bengal CM Mamata Banerjee’s much-demanded financial help for the state has become the latest bone of contention between the Congress and her Trinamool Congress, the second largest partner of the UPA alliance.

West Bengal CM Mamata Banerjee’s much-demanded financial help for the state has become the latest bone of contention between the Congress and her Trinamool Congress, the second largest partner of the UPA alliance.

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Banerjee is reluctant to undertake major tax reforms, a pre-condition for central assistance schemes like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). She, however, wants the UPA government to keep on pouring financial help.

Banerjee's government in West Bengal has asked the Centre to de-link-just for Bengal-imposition of water tax and release of further central assistance under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The West Bengal CM made it clear that she would not impose water user charges to burden the people but wants the release of almost Rs1,000 crore from the JNNURM fund to support urban drinking water schemes.

“We have got a request on this issue. We are considering the case,” said minister of state for urban development and Trinamool MP Saugata Roy.

As the Union finance ministry is pressurizing the state to raise taxes, an irked Banerjee plans to shot a letter to the PM to seek his intervention.