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Tuesday, March 9, 2021

Preparation of Covid cess on Re 1 per liter on petrol and diesel in Budget 2021!

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So, is the government ready for additional covid cess on petrol and diesel in Budget 2021? The report of the news agency IANS says that the government is preparing 1 rupee Covid cess on the petrol and diesel in the budget. For information, let us know that the prices of petrol and diesel are already running at an all-time high. Petrol in Mumbai has reached the level of Rs 92 per liter.

Corona vaccination program is going on in the country from January 16. It is believed that about 60-65 thousand crore rupees will be spent on this vaccination program. The treasury of the government is empty and the earnings have been severely affected. In such a situation, it is necessary to collect additional funds from somewhere. The IANS quoted its sources as saying that it has been agreed to Covid cess on petrol and diesel. Explain that for the current fiscal year 2020-21, the government had made a provision in the budget to collect funds of 26,192 crore through health and education cess.

Different options are being discussed

Recently, The Economic Times had published the Covid cess. It was said that in this budget, Finance Minister Nirmala Sitharaman can announce coronavirus cess. The government needs to fill its treasury under any circumstances. Covid cess can be a step towards this. However, a final decision has not been taken yet. The people of the industry have appealed to the government not to think about increasing the tax rate or introducing a new tax in this budget. The economy is already going through a recession. In such a situation, the burden of additional tax can weaken this pace further. This is the reason why there is a discussion about Corona cess. It is believed that this can be imposed on people with high income. It is also possible that this can be applied to the custom duty or excise duty (excise) imposed on petrol and diesel.

Many states have imposed such cess.

Many state governments have already announced such cess. GST is the main source of income of the states. There has been a huge decline in the GST collection after Corona. In such a situation, many states have announced cess to collect funds. Covid cess has been imposed on mineral material in Jharkhand, while Punjab has increased the tax on alcohol. Kejriwal government of Delhi had imposed 70 percent corona cess on liquor. It was withdrawn in June 2020 but VAT was subsequently increased. People of all categories have been affected by this epidemic. This is the reason why economically informed tax rates have suggested no change. An alternative to Covid cess has been suggested in his place.

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