Linking cess with govt borrowing
- October 4, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Linking cess with govt borrowing
Subject – Economy
Context – The GST Council’s inaction on petro products and cess continuing till 2026 are likely to make life difficult for consumers
Concept –
- Currently all taxes levied by both the Centre and States form two-thirds of the final price paid by the consumer.
- The GST Council’s decision to retain compensation cess up to 2026 is also likely to disappoint consumers.
- The Centre levies a fixed excise duty while States impose a VAT on petro products.
- VAT is advalorem tax.
To know about Cess and Surcharge, please click here.
To know about the history of cess in India, please click here.