Lok Sabha Question No. 226 (STARRED), answered on 2017-03-17
Subject: Revenue Generated through Cess
Ministry: FINANCE
Asked by: ANANT KUMAR DATTATREYA HEGDE

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA STARRED QUESTION NO.  *226

TO BE ANSWERED ON FRIDAY, MARCH 17, 2017 PHALGUNA 26, 1938 (SAKA)

## REVENUE GENERATED THROUGH CESS

*226: SHRI  ANANTKUMAR HEGDE:

Will the Minister of Finance be pleased to State:

- (a) whether  there  has  been  a  substantial  increase  in  the  total  revenue  generated through cess and surcharge during the financial year 2016-17 as compared to 201415;
- (b)  if  so,  the  details of the revenue generated through cess and surcharge during the same period and the estimated revenue likely to be generated in the financial year 2017-18; and
- (c) the details including the rates of the new cess and surcharge levied during the last two years?

## ANSWER FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (c ): A Statement is laid on the table on the House.

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Statement as referred to in reply to Starred Question No. *226 to be answered on 17 th March, 2017 in Lok Sabha on the subject of   Revenue Generated through Cess

- (a) The total revenue generated through Cess and Surcharge during financial year 2014-15 was Rs. 119276.65 crore which has increased to Rs. 265661.61 crore in financial year 2016-17*.
- (b)          The  details  of  the  revenue  generated  through  cess  and  suchrage  during  the same period is as under:-

| Financial Year   |   2014-15 |   (Rs. in Crore) 2016-17* |
|------------------|-----------|---------------------------|
| Cess + Surcharge |    119277 |                    265662 |

(* Actual Revenue for the current fiscal year till 31 st March, 2017 is yet to be realized)

The estimated revenue likely to be generated through Cess and Surcharge in the financial year 2017-18 is Rs. 282211.98 crore.

- (c) The detail of the new cess/surcharge under direct and indirect tax levied during the last two years is at annexure.

## Annexure as referred to in reply to part (c) of Starred Question No. 226 to be answered in Lok Sabha on 17.03.2017

The detail of the new cess/surcharge under direct and indirect tax levied during the last two years.

## Direct Tax

(i)  Under  the  Income  Declaration  Scheme,  2016  (the  Scheme),  a  surcharge  under  the  name Krishi  Kalyan  Cess  was  levied  @  25  percent  of  the  tax  i.e  @  7.5  of  the  undisclosed  income declared under the Scheme.

(ii) The Taxation Laws (Second Amendment) Act, 2016 enacted on 15.12.2016 has amended the provisions of section 115BBE of the Income-tax to levy a surcharge at the rate of 25 percent of tax along with the applicable cess.

(iii)  Vide  the  Taxation  Laws  (Second  Amendment)  Act,  2016,  the  Taxation  and  Investment Regime for  Pradhan  Mantri  Garib  Kalyan  Yojana,  2016  (PMGKY)  has  been  introduced  under which a surcharge under the name Pradhan Mantri Garib Kalyan Cess at the rate of 33 percent of tax is levied. (iv) 'Education Cess on income-tax' at two percent and 'Secondary and Higher Education Cess on  income-tax'  at  one  per  cent,  are  levied  by  the  Union  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. (v) The Finance Bill, 2017 has proposed to levy a new surcharge for FY 2017-18 (AY 2018-19) in case of an individual, Hindu undivided family, association of person, body of individual or artificial juridical person at the rate of ten percent of such tax, where the taxable income exceeds fifty lakh rupees but does not exceed one crore rupees.

## Indirect Tax

(i)The Swachh Bharat Cess has been levied with effect from 15.11.2015 on all taxable services which are not exempt or in Negative List at the rate of 0.5%.

(ii) The infrastructure Cess has been levied with effect from 01.03.2016 at the rates of 1%, 2.5% & 4%   as a duty of central excise.

(iii) The Krishi Kalyan Cess has been levied with effect from 01.06.2016 on all taxable services which are not exempt or in Negative List at the rate of 0.5%.

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