The Centre has decided to impose from November 15 a Swachh Bharat Cess of 0.5 percent on all services, which come under the purview of Service Tax, and will result into a tax of 50 paisa only on every one hundred rupees worth of taxable services.
According to the Finance Ministry, the cess will create funds for financing and promoting Swachh Bharat initiatives.
The Cess is not just another tax, but a step towards involving each and every citizen in making contribution to Swachh Bharat.
A provision was made in current financial year's Budget for levying a Swachh Bharat Cess on all or any of the services for the purposes of financing and promoting Swachh Bharat initiatives.
Increased allocation for the Swachh Bharat Abhiyan can prevent many of diseases including malaria, dengue, diarrhea and jaundice with consequential benefit to one and all. According to the Government estimates, expenditure on health adds up to 6,700 crore rupees annually or Rs 60 per capita on medical treatment.