Tamil Nadu Chief Minister Jayalalitha has criticised the centre for reducing Central Sales Tax compensation to states by linking it with VAT rate revision.
In a letter to the Prime Minister Dr. Manmohan Singh she said though the Centre had agreed to compensate states for the revenue loss for 2010-11 also, the eligible compensation was arbitrarily restricted.

This was done by by deducting additional revenue realised through revision of VAT rate from four to five per cent, she said.
Earlier, West Bengal Chief Minister Mamata Banerjee had also made similar objection.