New Delhi: Government will subsume all the additional levies like Krishi Kalyan and Infrastructure cess in the Goods and Services Tax (GST), within one year of its implementation, a senior tax official said on Saturday.
According to Ram Tirath, Member (Budget), Central Board of Excise and Customs, the cesses have been imposed since the government is in need of revenue. "Once the Goods and Services Tax comes to play, hopefully by April 2017, all these taxes will be subsumed," he said.
He was addressing a CII organised Finance Ministry-Industry interface.
In Budget 2016-17 presented by Finance Minister Arun Jaitley last month, the government has imposed two new cesses -- one related to farm and another for infrastructure.
With effective June, the government has proposed to impose a Krishi Kalyan cess of 0.5 per cent on all taxable services.
The funds generated would be used to improve agriculture situation and welfare of farmers.
Citing pollution and traffic situation in the country, the finance minister also proposed to levy an infrastructure cess of 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on other higher engine capacity vehicles and SUVs.
In the previous budget, government had levied Swachh Bharat cess of 0.5 per cent on all taxable services.
The tax official said the government has tried to address all tax areas in the Budget. He also hoped that excess litigation in indirect tax matters would be cut down by 50 per cent in an year's period.
"All of the areas (of taxes), we have addressed them. Whatever we could think of, whatever inputs we have got, we have done. And I am very much sure that within one year litigation in excess in indirect tax matter should be down by 50 per cent," he said.
Tirath also said the government has simplified and rationalised many tax processes in the Budget.
Published Date: Mar 05, 2016 02:34 pm | Updated Date: Mar 05, 2016 02:41 pm