2 New Cess introduced - Krishi Kalyan Cess and Infrastructure Cess
Q. The following Cess are mentioned in the Budget 2016-17. Which of the following Cess are newly introduced?
1) Infrastructure Cess
2) Clean Environment Cess
3) Krishi Kalyan Cess- Published on 21 Mar 16
a. 1, 2, 3
b. 2, 3
c. 1, 3
d. All of the above
ANSWER: 1, 3
- Government proposes to levy an infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs.
- The Cess will be primarily used for funding pollution reduction and improve the traffic situation in the Indian cities.
- Krishi Kalyan Cess, @ 0.5% will be levied on all taxable services, proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers
- Clean Environment Cess is nothing but Clean Energy Cess which was there already. It was just renamed and not newly introduced.
You may like