Confused about COVID Cess? Here is Brief Overview on How Exactly the Concept of Cess Works
Budget 2021- Chances of a COVID cess!
With Budget 2021 round the corner, there are thoughts on what the FM has in store for the Taxpayers & one topic amongst these is a COVID Cess.
So let’s have a brief overview on how exactly this concept of Cess works-
> Article 270 of the Constitution of India grants power to the Union to raise revenue by levying cess.
> The Government can collect tax in the name of cess for generating revenue but it shall be earmarked for specific purpose only. Its imp to note that Central cess collections aren’t shared with states under Revenue devolution.
> In Budget 2015, Swachh Bharat Cess(SBC) was announced, while in Budget 2016 we came across Krishi Kalyan Cess(KKC). Such and many other cess were introduced as & when required in earlier years. These were later abolished once the purpose was served.
> The only active cess at present is a 4% Health & Education Cess levied on the base tax amount.
> The Centre is likely to bear the cost of COVID-19 vaccination programme which commenced yesterday. The levy of COVID-19 cess will help Govt in faster & earmarked generation of funds for this cause.
So let’s see what happens on the 1st of Feb, 2021!
Author : Ankit Lohiya (Click Here to View Profile)
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