Karnataka Deputy Chief Minister DK Shivakumar said that the state has suffered injustice in terms of tax share from the Union government and announced that protests will be staged to get rights. Speaking to reporters in Bengaluru, Shivakumar said, on Saturday, October 12, “The state has suffered a grave injustice by the central government in terms of distribution of taxes. The shares given to Uttar Pradesh, Madhya Pradesh are not given to Karnataka. The share is even lower than Andhra Pradesh this time.”

Shivakumar further said, “No tax is generated from Andhra Pradesh to the Union government. Karnataka is treated inferior to that state. We will organise agitations in this regard in the coming days. We will protest, our tax is our right, we will organise programmes in this regard. We will continue the agitation as disparity continues. Why are the BJP MPs and Union Ministers in the Union government from Karnataka not raising their voice? Union Finance Minister Nirmala Sitharaman, who is elected to the Rajya Sabha from Karnataka, is in charge and we have four to five cabinet ministers. All are sitting quietly even as the grave injustice is committed to the state.”

When asked about the tax share being distributed on the basis of population, development and also BJP’s statement of how much funds were released during the UPA government and under the former PM Manmohan Singh, Shivakumar stated that all issues will be discussed in the Assembly. “I ask them to join us in the protest,” he stated.

Former Congress MP DK Suresh alleged that the Union government was provoking the people of Karnataka with tax injustice, a claim opposed by the BJP. Suresh said, "Time and again, Karnataka and other southern states are being cheated in tax allocations. The Union government is provoking the people of Karnataka and southern India."

Talking about the tax distribution list released by the Central government on Thursday, he said, "I'm deeply saddened by the injustice being done to Kannadigas. Karnataka, the second-highest tax-paying state in the country, has been allocated only Rs 6,498 crore."

Refuting Suresh's claims, BJP Member of the Legislative Council (MLC) N Ravikumar demanded statistics on how much tax money Karnataka was provided by the successive Congress governments at the Union. The BJP MLC said, "We are ready to release the figures on how much financial assistance our Central government has provided under the leadership of Prime Minister Narendra Modi. Our government has given more funds to Karnataka and other southern states than the Congress-led government did, and no injustice has been done."

The union government, on October 10, had released a tax amount of Rs 1,78,173 crore to state governments, in which Karnataka got Rs 6,498 crore in the state-wise distribution of net proceeds of union taxes and duties for October 2024.