NEW DELHI: Eating or staying in five stars hotels are set to become costlier, as the government is likely to start levying the ‘Swachh Bharat Cess‘ in some services. This will surely leave a slightly bigger dent in your pocket and the Centre expects to net Rs 2,000 crore from this.
Sources, however, indicated that against an “enabling provision” of levying up to 2% cess over the 14% service tax, the government is expected to notify an additional 1% levy.The government aims to mop up around Rs 14,000 crore annually for the Swachh Bharat Kosh which includes the 2% cess on the five services, apart from a levy of Rs 200 a tonne on coal. Details on the other four services were not available.
The move to impose the service tax is expected to fetch the government around Rs 2,000 crore a year, while coal is expected to generate around Rs 6,000 crore. The Budget has proposed an enabling provision of levying cleanliness cess of up to 1 per cent “on all or certain services if need arises” This cess will be over and above the new service tax rate of 14 per cent. Further, public sector companies are being asked to chip in with a part of their corporate social responsibility (CSR) contribution to the fund.