Swachh Bharat Cess - a Critical Analysis

Abstract

Prime Minister Shri Modi ji has adopted the Swachh Bharat Abhiyan as one of the primary goals of his government that was aimed at improving the overall health and well-being of citizens of India. To ensure that Swachh Bharat Abhiyan will meet its desired goals, the government has introduced the Swachh Bharat Cess (SBC) for raising funds to meet mission objectives.

According to economists, this cess also prepares the ground for sudden jump in service tax rate under the goods and services tax regime. The GST will bring overall incidence of taxation down but tax rate on services will inevitably have to go up.

This article discusses the provisions of SBC and its impact on cost of various services and products.