New Delhi, Nov 7
Indian government has decided to levy a cess for the national cleanliness drive ‘Swachh Bharat Abhiyan’ to give a boost to the drive.
It is not another tax but a step towards involving each and every citizen in making contribution to Swachh Bharat, the government opined.
In this direction, the Government has decided to impose, with effect from November 15 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.
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.
Notably, a 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.