BackNot possible to end cesses, surcharges now: Plan panel
Not possible to end cesses, surcharges now: Plan panel
Premium
New Delhi: People will have to live with cesses and surcharges as it is not possible for the government to eliminate them at present as has been advocated by the Economic Survey, planning commission member Saumitra Chaudhuri said.
“The reality is that they (cesses and surcharges) are there and if you make a change today it may have an immediate effect which you may not be able to compensate," he said when asked whether the government can remove cesses and surcharges.
Agreeing that surcharge should be removed once the purpose for which it was imposed is over, Saumitra said the government may not be willing to remove them as of now in view of revenue considerations.
“They (surcharge) are imposed on income beyond a limit... The government may not be ...(willing to) change that at the moment. May be at future date yes. But not today," Chaudhuri said.
The Economic Survey which was tabled by the finance minister Pranab Mukherjee in Parliament ahead of the general Budget suggested “review and phasing out of surcharges, cesses and transaction taxes (such as commodities, transaction tax, securities transaction tax and fringe benefit tax)".
The government imposes 10% surcharge on income above Rs10 lakh, besides education and road cesses, the proceeds of which are used for funding sector-specific activities.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
