Govt Levies Swachh Bharat Cess At 0.5 Per Cent On Services Liable For Tax

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The Government has decided to impose a Swachh Bharat Cess at the rate of 0.5 per cent on all service presently liable to service tax, with effect from 15th November 2015.

The proceeds from this cess is to be exclusively used for Swachh Bharat initiatives. This would now make eating out, telecom services, airline tickets more expensive by 0.5 per cent.

Govt Levies Swachh Bharat Cess At 0.5 Per Cent On Services Liable For Tax
"Swachh Bharat Cess is not another tax but a step towards involving each and every citizen in making contribution to Swachh Bharat. In this direction, the Government has decided to impose, with effect from 15th November 2015, a Swachh Brarat Cess at the rate of 0.5% on all services, which are presently liable to service tax. This will translate into a tax of 50 paisa only on every one hundred rupees worth of taxable services. The proceeds from this cess will be exclusively used for Swachh Bharat initiatives," a government release has stated.

In the General Budget, 2015-16, a provision was made for levying a Swachh Bharat Cess on all or any of the services, for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto.

According to the Government of India estimates, expenditure on health adds up to Rs.6,700 crore annually (approximately Rs.60 per capita). Increased allocation for Swachh Bharat Abhiyan can prevent many of these diseases with consequential benefit to one and all.

Study by American Journal of Tropical Medicine and Hygiene reveals that between 2006 and 2012, India reported an annual average of 20,474 dengue cases, with direct medical cost of about Rs.3500 crore per annum.

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