Lok Sabha Question No. 4354 (UNSTARRED), answered on 2023-03-27
Subject: Need for Levying Cesses and Surcharges
Ministry: FINANCE
Asked by: Dayakar Pasunoori, Kavitha Malothu, Gaddam Ranjith Reddy, Venkatesh Netha Borlakunta

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA

## UNSTARRED QUESTION NO. 4354 TO BE ANSWERED ON MONDAY, MARCH 27, 2023 CHAITRA 6, 1945 (SAKA)

## NEED FOR LEVYING CESSES AND SURCHARGES

4354. SHRI  PASUNOORI  DAYAKAR: SHRIMATI  KAVITHA MALOTHU DR. G. RANJITH  REDDY: SHRI VENKATESH NETHA BORLAKUNTA:

Will the Minister of FINANCE be pleased to state:

- (a)  whether the Government is estimated to get Rs. 5.10 lakh crores in 2022-23 through cesses, surcharges, etc. and if so, the details thereof;
- (b)  the  details  of  various  specific  needs  for  which  cesses  and  surcharges  have  been levied by the Government and the amount collected under each of such specific need;
- (c)  the  details  of  taxes  collected  under  additional  excise  duty  during  each  of  the  last three years;
- (d)  whether  additional  excise  duty  levied  by  Government  is  allowed  under  the Constitution of the country and if so, the details thereof; and
- (e) the reasons/rationale for not sharing the revenues collected by the Government from the aforesaid duties with the States?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) Details of Cesses and Surcharges indicating RE2022-23 for the FY 2022-23 [ as per budget Documents 2023-24] are as per Annexure 'A'.
- (b)  As  per  provisions  under  Article  270  of  the  Constitution  of  India  -  All  taxes  and duties referred to in the Union List, except the duties and taxes, surcharge on taxes and duties and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States.  Further to this, utilizations of various Cesses and Surcharges are governed by the enabling provisions of appropriate Act(s) or the executive decision, as the case may be. For instance, in the case of GST Compensation Cess, the proceeds of the  Cess  leviable  is  initially  credited  to  the  Consolidated  Fund  of  India,  in  terms  of Article 266 of the Constitution of India, and the funds are provided to the States/UTs through GST Compensation Fund created in Public Account of India as per provisions of the GST Compensation Act, 2017.

(c) Road & Infrastructure Cess (RIC) & Agriculture Infrastructure & Development Cess are levied as Additional duty of Excise in the post-GST regime and the details of taxes collected  under  Road  &  infrastructure  Cess  (RIC)  &  Agriculture  Infrastructure  & Development Cess (AIDC) during each of the last three years is as follows:

(Rs. In crore)

| DUTY HEAD                                            | FY 2019-20   | FY 2020-21   | FY 2021-22   |
|------------------------------------------------------|--------------|--------------|--------------|
| *Road &Infrastructure Cess (RIC)                     | 122,867      | 235,781      | 195,985      |
| Agriculture Infrastructure & Development Cess (AIDC) | -            | -            | 48,065       |

Source: Receipt Budget

*Road & Infrastructure Cess includes erstwhile Road Cess also under Central Excise.

(d) Article  265  of  the  Constitution  of  India  says  that  "No  tax  shall  be  levied  or collected except by authority of law". Accordingly, all the taxes, including additional duty of excise is levied in accordance with the provisions of the Constitution of India. Additional duty of Excise is levied under the relevant provisions of Finance Acts.

(e)  Article  270  of  the  Indian  Constitution  excludes  the  surcharge  on  taxes  and  duties referred to in Article 271 and any cess levied for specific purposes under any law made by parliament from the taxes to be distributed between the Union and the States.

*****

## Annexure 'A'

| Statement showing details of surcharge and cesses estimated as part of principal taxes   | Statement showing details of surcharge and cesses estimated as part of principal taxes   | Statement showing details of surcharge and cesses estimated as part of principal taxes   | Statement showing details of surcharge and cesses estimated as part of principal taxes   |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                          |                                                                                          |                                                                                          | ( ₹ crore )                                                                              |
| Sl. No.                                                                                  | Name of the levy                                                                         | Major Head                                                                               | Revised 2022-23                                                                          |
| SURCHARGE                                                                                |                                                                                          |                                                                                          |                                                                                          |
| 1                                                                                        | Surcharge under Corporation Tax                                                          | 0020                                                                                     | 80288.46                                                                                 |
| 2                                                                                        | Surcharge under Taxes on Income                                                          | 0021                                                                                     | 75961.53                                                                                 |
| 3                                                                                        | Social Welfare Surcharge under Customs                                                   | 0037                                                                                     | 17000.00                                                                                 |
|                                                                                          | Total Surcharge (1 to 3)                                                                 |                                                                                          | 173249.99                                                                                |
| CESSES                                                                                   |                                                                                          |                                                                                          |                                                                                          |
| A.                                                                                       | GST Compensation Cess                                                                    | 0009                                                                                     | 130000.00                                                                                |
| B.                                                                                       | Other Cesses (excluding GST Compensation Cess)                                           |                                                                                          |                                                                                          |
| 1                                                                                        | Health and Education Cess                                                                |                                                                                          | 62500.01                                                                                 |
| 2                                                                                        | National Calamity Contingent Duty                                                        |                                                                                          | 8000.00                                                                                  |
| 3                                                                                        | Health Cess                                                                              | 0037                                                                                     | 20.00                                                                                    |
| 4                                                                                        | Agriculture Infrastructure and Development Cess                                          |                                                                                          | 73500.00                                                                                 |
| 5                                                                                        | Cesses on Exports                                                                        | 0037                                                                                     | 2100.00                                                                                  |
| 6                                                                                        | Road and Infrastructure Cess*                                                            |                                                                                          | 58200.00                                                                                 |
| 7                                                                                        | Cess on Crude Oil                                                                        | 0038                                                                                     | 21000.00                                                                                 |
| B.                                                                                       | Other Cesses (excluding GST Compensation Cess)                                           |                                                                                          | 225320.01                                                                                |
| C.                                                                                       | Total Cess including GST Compensation Cess (A+B)                                         |                                                                                          | 355320.01                                                                                |