Govt clarifies stand on 2% health cess
The government on Friday clarified that the proposed two per cent health cess for the poor won't be an additional burden on the tax payers, but a levy on the central taxes.
By PTI |
MUMBAI: The government on Friday clarified that the proposed two per cent health cess for the poor won't be an additional burden on the tax payers, but a levy on the central taxes.
"There has been a perception that the proposed Health cess for the poor, would be an additional surcharge. However, we want to clarify this to the people that this two per cent would be charged on the central duty itself," said ministry of chemicals and petrochemicals deputy secretary G S Sandhu .
Citing an example, he said, "If there is excise duty of 16 per cent, the two per cent will be of this figure, which comes to 0.32 per cent. So the total central excise including the two per cent cess would only be 16.32 per cent, not 18 per cent, as perceived earlier."
Union minister for fertilisers, chemicals and steel Ram Vilas Paswan also clarified the same and said that no additional burden would be passed on to the tax payers while charging the cess.
He was speaking to the reporters on the sidelines of the inaugural function of the Rashtriya Chemical Fertilisers Trombay on Thursday.
The Government intends to collect around Rs 6,000 crore annually from this cess, which would be majorly used for health schemes for the families living below poverty line.
Sandhu also said that the Ministry was confident of achieving the target in the next fiscal after the proposal is approved by the government in the coming Budget.
"There has been a perception that the proposed Health cess for the poor, would be an additional surcharge. However, we want to clarify this to the people that this two per cent would be charged on the central duty itself," said ministry of chemicals and petrochemicals deputy secretary G S Sandhu .
Citing an example, he said, "If there is excise duty of 16 per cent, the two per cent will be of this figure, which comes to 0.32 per cent. So the total central excise including the two per cent cess would only be 16.32 per cent, not 18 per cent, as perceived earlier."
Union minister for fertilisers, chemicals and steel Ram Vilas Paswan also clarified the same and said that no additional burden would be passed on to the tax payers while charging the cess.
He was speaking to the reporters on the sidelines of the inaugural function of the Rashtriya Chemical Fertilisers Trombay on Thursday.
The Government intends to collect around Rs 6,000 crore annually from this cess, which would be majorly used for health schemes for the families living below poverty line.
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Sandhu also said that the Ministry was confident of achieving the target in the next fiscal after the proposal is approved by the government in the coming Budget.
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