<h1>Opposition warns rising cesses and GST rate rationalisation hurt state revenues as cess share balloons to 20%</h1> A regional opposition Rajya Sabha leader criticized the central government's reliance on cesses, saying they bypass states because cess receipts are retained entirely by the Centre and have grown from about 7% of Union tax revenue in 2012 to roughly 20% in 2025, with Rs 5.7 lakh crore of cess and surcharge reportedly unutilised since 2019. He noted the divisible pool's share fell from 89% of gross tax revenue in 2011 to 79% in 2021, cited a 462% rise in cess between 2015-2024, and warned GST rate rationalisation (two tiers: 5% and 18% from Sept 22) will shrink state revenues unless compensation mechanisms are adopted.