Lok Sabha Question No. 4714 (UNSTARRED), answered on 2020-03-23
Subject: Collection of Education Cess
Ministry: FINANCE
Asked by: S. Venkatesan

Government of India Ministry of Finance Department of Revenue

## LOK SABHA

## UNSTARRED QUESTION NO. 4714

TO BE ANSWERED ON MONDAY, MARCH 23, 2020 CHAITRA 3, 1942 (SAKA)

## COLLECTION OF EDUCATION CESS

4714. SHRI S. VENKATESAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Secondary and Higher Education cess is collected;
- (b) if so, the amount of cess collected till date, year-wise along with the year since when this cess is being collected;
- (c)  whether  this  cess  has  been  transferred  to  the  relevant  Fund  and  if  so,  the  details thereof; and
- (d) whether there is any audit observation by the Government for procedural lapse in this regard and if so, the details thereof?

## ANSWER MINSTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a)  &  (b):      No  Sir,  secondary  and  higher  education  cess  is  not  collected  now. However, the Secondary and Higher Education cess was collected since Financial Year  2007-08  to  2017-18.  The  details  of  the  Secondary  and  Higher  Education collection on direct & indirect taxes is as under:-

## (Rs. in Crore)

| Financial Year   |   Direct Tax |   Indirect Tax |
|------------------|--------------|----------------|
| 2007-08          |      2978.9  |        7411.82 |
| 2008-09          |      3197.32 |        7331.91 |
| 2009-10          |      3533.45 |        8028.61 |
| 2010-11          |      4242.93 |       11413.3  |
| 2011-12          |      4821.45 |       12729.2  |
| 2012-13          |      5268.65 |       14759.7  |
| 2013-14          |      6016.28 |       15223    |
| 2014-15          |      6594.81 |       16184    |
| 2015-16          |      6943.1  |        6873.1  |
| 2016-17          |      7967.42 |        5983.82 |
| 2017-18          |      9390.92 |        3071.11 |

(c ) & (d):   As per the Report of the Comptroller and Auditor General of India for the Year  2017-18  on  the  Union  Government  Accounts  the  following  observations  has been made on Secondary and Higher Education Cess.

The Cess was levied in 2006-07 and Rs. 94,036 Crore has been collected so far. The  Cess  is  being  retained  in  the  CFI  contrary  to  the  procedure,  though  a  Fund (Madhyamik and Uchchtar Shiksha Kosh ) for this purpose was created in August 2017,  and  has  not  been  operationalised  so  far.   This  issue  has  been  reported regularly in previous CAG Reports'

It  is  mentioned  that,  the  cabinet  has  approved  creation  of  Madhyamik  and Uchchtar  Shiksha  Kosh  on  16.08.2017.  The  allocation  through  Madhyamik  and Uchchtar Shiksha Kosh under Department of Higher Education and Department of School Education & Literacy in FY 2018-19 and FY 2019-20 is given as below:-

(Rs. in Crore)

| Financial Year   |   Department of Higher Education |   Department of School Education & Literacy |
|------------------|----------------------------------|---------------------------------------------|
| 2018-19          |                          7690.52 |                                     4141.05 |
| 2019-20          |                          9399.03 |                                     5061.02 |

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