NEW DELHI: Coming Wednesday, you will have to pay more for making calls, eating out, air or rail travel, buying and renewing insurance, watching films at cinema halls and TV through DTH, among many others services.
The 0.5 per cent Krishi Kalyan Cess announced in the Union Budget on “all taxable services” comes into effect June 1.
Last year, the Modi government had imposed a 0.5 per cent Swachchh Bharat cess on service tax to fund Prime Minister’s pet project, the Swachh Bharat Abhiyan.
In a little over a year, the Modi government has increased service tax from 12.36 per cent to 15 per cent (including the two cesses).
Only last month, the parliamentary standing committee on finance had expressed its displeasure over the fact that the money collected by way of cess was not being utilised for the designated purpose.
The Modi government has been using the cess route to generate more revenue.
