The concern over fiscal asymmetries and the dissatisfaction of certain Indian states with the current devolution formula is understandable. Yet, the remedy offered by Dr. C. Rangarajan, an idea to allow Indian states to levy personal income tax, risks dismantling core pillars of India’s fiscal architecture, and making states more lazy.This opinion will offer a counterview — however not with the depth and width of financial expertise or institutional experience, or economic wisdom of Dr. Rangarajan, but with the same nationalist intent and an unwavering belief that the solution must lie within the constitutional framework that binds us. Sovereign taxation is not just a financial lever but a constitutional construct that upholds the unity of a diverse federation. Diluting this foundational principle may not correct imbalance but instead institutionalise fragmentation.
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