Surcharge and cess on taxes to fetch govt Rs2,82,212 cr in 2017-18
17 March 2017
The government expects to garner an estimated Rs2,82,212 crore through cess and surcharge on tax rates in 2017-18 against an estimated Rs2,65,661.61 crore collected in 2016-17, finance minister Arun Jaitley told the Lok Sabha today.
"The estimated revenue likely to be generated through cess and surcharge in the financial year 2017-18 is Rs2,82,211.98 crore," he said during question hour.
Jaitley said that the total revenue generated through cess and surcharge during 2014-15 was Rs1,19,276.65 crore.
The minister said under the Income Declaration Scheme 2016, a surcharge under the name of Krishi Kalyana Cess was levied at the rate of 25 per cent of the tax rate, ie, at the rate of 7.5 per cent of the undisclosed income declared under the scheme.
The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (2016) has been introduced under which a surcharge under the name of Pradhan Mantri Garib Kalyan Cess at the rate of 33 per cent of tax is levied.
Jaitley said 'Education Cess on Income Tax' at two per cent and 'Secondary and Higher Education Cess' at one per cent, are levied by the government every year through the Finance Act.
Originally, the education cess was introduced in the tax proposals of budget 2004 and secondary and higher education cess was introduced in the tax proposals of budget 2007.
The minister said the Finance Bill 2017 has proposed to levy a new surcharge for 2017-18 in case of an individual, Hindu undivided family, association of person, body of individuals or artificial juridical person at the rate of 10 per cent of such tax, where the taxable income exceeds Rs50 lakh but does not exceed Rs1 crore.
Replying a supplementary, Jaitley said such cess and surcharges were levied so that the government could spend the amount in building roads, schools, hospitals and building and other infrastructure.