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Cess on Telecom Services,Fuel and Minerals to Fund Swachh Bharat Drive?

News

The government may soon levy cess on telecom services, fuel and minerals to achieve its vision of Swachh Bharat, if the recommendations of the sub group of chief ministers on Swachh Bharat Abhiyan are accepted. 

Source:ET

SNP Insight

Levying of additional cess on Telecom services, fuels and minerals is a move that may increase the tax burden further for operating companies increasing the overall cost burden. On other hand it may hamper the pockets of the end consumers with rapid increase in the overall expenses with increase in price of petrol and diesel. The government should try and come up with more innovate ways to raise funds in form of PPP partnerships for the Swachh Drive. Squeezing money from the hands of already ailing consumers and producers may not turn out to be a viable option.

Source: SNP Infra Research