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Government of India considering 0.5 per cent Swachh Bharat cess on petrol and diesel

Team OD  | Published: January 25, 2016, 08:00 AM IST

The Government of India is contemplating levying a 0.5 per cent cess on petrol and diesel to fund the Swachh Bharat Abhiyan programme. A final announcement conforming this is likely to be made in the February budget provided the finance ministry approves it.

Fueling tank

Additionally, the government is also proposing a 0.5 per cent cess on telecom services, a 1 per cent cess on accumulated waste produced by mineral generation plants and a 0.5 per cent hike in service tax. These proposals have been made by Niti Aayog (National Institution for Transforming India), a replacement for the Planning Commission, which is consulting different states regarding the Swachh Bharat mission.

From November 15, 2015 onwards, the government has imposed a 0.5 per cent Swachh Bharat cess on taxable services. The Swachh Bharat Mission was launched on October 2, 2014. The government programme includes building household toilets, community and public toilets and scientific waste management.

The estimated cost for the Swachh Bharat mission is Rs 2.23 lakh crore and estimated expenditure for rural areas is Rs 1.34 lakh crore and for urban areas is Rs 62,010 crore.

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