Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Cess proceeds in a black hole    </title>
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-The Hindu

The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic..."/>
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The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic..." />
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                            <div align="justify">-The Hindu<br /><br />The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic flyers except those flying to remote locations, and international travellers. This cess is meant to fund losses that airlines may incur in connecting to hinterland locations. The Central government loves cesses, partly because it doesn&rsquo;t have to share the proceeds with State governments. It has been levying them for several important causes including primary education, secondary education, road development, the welfare of construction workers and beedi workers, clean energy, research and development and universalisation of telecom coverage, among several others. But good intentions often pave the road to hell, as is evident from the fact that over Rs.1.4 lakh crore of cess proceeds lie unutilised and inadequately accounted for in the government&rsquo;s books. Take, for example, the case of the Secondary and Higher Education Cess paid by all income tax payers that has yielded over Rs.64,000 crore between 2006 and 2015. Not a rupee of that has been spent, while hundreds of students now fork out more for higher education since the government has discontinued the non-National Eligibility Test fellowship. That the government has failed to even set up a fund to pool the proceeds shows the lack of planning that precludes and follows the levy of a cess. So is the case with the proposed airfare cess. The government is yet to identify routes that the cess would subsidise, or spruce up the many defunct civil airports.<br /><br />The point of a cess is that the money it generates can only be used for the designated purpose so it can be an effective policy tool in theory. But if the money isn&rsquo;t spent for the designated purpose, as the audit report of the Comptroller and Auditor General of India tabled in Parliament has shown, it just stagnates and distorts the economy further: the additional tax brings down real incomes without any accompanying gain in socio-economic indicators as targeted. Then there is the question of whether a given cess is needed at all. Most reasons cited for levying a cess, such as purposes of education, are important enough for direct budgetary allocations &mdash; as happens in the developed world. So the government can simply raise the tax rate rather than impose multiple cess levies. But with the Fourteenth Finance Commission increasing States&rsquo; share of the common pool of resources, cesses are tempting for the Centre to shore up its own finances. If it wants to keep complicating the taxation system for good intentions, the government should start disclosing a deployment plan to achieve the intended outcomes from cess collections before imposing the next such levy on citizens. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616" class="re" target="_blank">The Hindu, 25 December, 2015, http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616</a><div class="clear"></div>
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                            <div align="justify">-The Hindu<br /><br />The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic flyers except those flying to remote locations, and international travellers. This cess is meant to fund losses that airlines may incur in connecting to hinterland locations. The Central government loves cesses, partly because it doesn&rsquo;t have to share the proceeds with State governments. It has been levying them for several important causes including primary education, secondary education, road development, the welfare of construction workers and beedi workers, clean energy, research and development and universalisation of telecom coverage, among several others. But good intentions often pave the road to hell, as is evident from the fact that over Rs.1.4 lakh crore of cess proceeds lie unutilised and inadequately accounted for in the government&rsquo;s books. Take, for example, the case of the Secondary and Higher Education Cess paid by all income tax payers that has yielded over Rs.64,000 crore between 2006 and 2015. Not a rupee of that has been spent, while hundreds of students now fork out more for higher education since the government has discontinued the non-National Eligibility Test fellowship. That the government has failed to even set up a fund to pool the proceeds shows the lack of planning that precludes and follows the levy of a cess. So is the case with the proposed airfare cess. The government is yet to identify routes that the cess would subsidise, or spruce up the many defunct civil airports.<br /><br />The point of a cess is that the money it generates can only be used for the designated purpose so it can be an effective policy tool in theory. But if the money isn&rsquo;t spent for the designated purpose, as the audit report of the Comptroller and Auditor General of India tabled in Parliament has shown, it just stagnates and distorts the economy further: the additional tax brings down real incomes without any accompanying gain in socio-economic indicators as targeted. Then there is the question of whether a given cess is needed at all. Most reasons cited for levying a cess, such as purposes of education, are important enough for direct budgetary allocations &mdash; as happens in the developed world. So the government can simply raise the tax rate rather than impose multiple cess levies. But with the Fourteenth Finance Commission increasing States&rsquo; share of the common pool of resources, cesses are tempting for the Centre to shore up its own finances. If it wants to keep complicating the taxation system for good intentions, the government should start disclosing a deployment plan to achieve the intended outcomes from cess collections before imposing the next such levy on citizens. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616" class="re" target="_blank">The Hindu, 25 December, 2015, http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616</a><div class="clear"></div>
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The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic..."/>
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                            <div align="justify">-The Hindu<br /><br />The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic flyers except those flying to remote locations, and international travellers. This cess is meant to fund losses that airlines may incur in connecting to hinterland locations. The Central government loves cesses, partly because it doesn&rsquo;t have to share the proceeds with State governments. It has been levying them for several important causes including primary education, secondary education, road development, the welfare of construction workers and beedi workers, clean energy, research and development and universalisation of telecom coverage, among several others. But good intentions often pave the road to hell, as is evident from the fact that over Rs.1.4 lakh crore of cess proceeds lie unutilised and inadequately accounted for in the government&rsquo;s books. Take, for example, the case of the Secondary and Higher Education Cess paid by all income tax payers that has yielded over Rs.64,000 crore between 2006 and 2015. Not a rupee of that has been spent, while hundreds of students now fork out more for higher education since the government has discontinued the non-National Eligibility Test fellowship. That the government has failed to even set up a fund to pool the proceeds shows the lack of planning that precludes and follows the levy of a cess. So is the case with the proposed airfare cess. The government is yet to identify routes that the cess would subsidise, or spruce up the many defunct civil airports.<br /><br />The point of a cess is that the money it generates can only be used for the designated purpose so it can be an effective policy tool in theory. But if the money isn&rsquo;t spent for the designated purpose, as the audit report of the Comptroller and Auditor General of India tabled in Parliament has shown, it just stagnates and distorts the economy further: the additional tax brings down real incomes without any accompanying gain in socio-economic indicators as targeted. Then there is the question of whether a given cess is needed at all. Most reasons cited for levying a cess, such as purposes of education, are important enough for direct budgetary allocations &mdash; as happens in the developed world. So the government can simply raise the tax rate rather than impose multiple cess levies. But with the Fourteenth Finance Commission increasing States&rsquo; share of the common pool of resources, cesses are tempting for the Centre to shore up its own finances. If it wants to keep complicating the taxation system for good intentions, the government should start disclosing a deployment plan to achieve the intended outcomes from cess collections before imposing the next such levy on citizens. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616" class="re" target="_blank">The Hindu, 25 December, 2015, http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616</a><div class="clear"></div>
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Home हिन्दी

Cess proceeds in a black hole

Published on Dec 25, 2015   Modified on Dec 25, 2015

-The Hindu The National Democratic Alliance government has just introduced a cess of 0.5 per cent on all taxable services for the Swachh Bharat campaign. In February 2016, it will introduce a 2 per cent cess on airfares for all domestic flyers except those flying to remote locations, and international travellers. This cess is meant to fund losses that airlines may incur in connecting to hinterland locations. The Central government loves cesses, partly because it doesn’t have to share the proceeds with State governments. It has been levying them for several important causes including primary education, secondary education, road development, the welfare of construction workers and beedi workers, clean energy, research and development and universalisation of telecom coverage, among several others. But good intentions often pave the road to hell, as is evident from the fact that over Rs.1.4 lakh crore of cess proceeds lie unutilised and inadequately accounted for in the government’s books. Take, for example, the case of the Secondary and Higher Education Cess paid by all income tax payers that has yielded over Rs.64,000 crore between 2006 and 2015. Not a rupee of that has been spent, while hundreds of students now fork out more for higher education since the government has discontinued the non-National Eligibility Test fellowship. That the government has failed to even set up a fund to pool the proceeds shows the lack of planning that precludes and follows the levy of a cess. So is the case with the proposed airfare cess. The government is yet to identify routes that the cess would subsidise, or spruce up the many defunct civil airports. The point of a cess is that the money it generates can only be used for the designated purpose so it can be an effective policy tool in theory. But if the money isn’t spent for the designated purpose, as the audit report of the Comptroller and Auditor General of India tabled in Parliament has shown, it just stagnates and distorts the economy further: the additional tax brings down real incomes without any accompanying gain in socio-economic indicators as targeted. Then there is the question of whether a given cess is needed at all. Most reasons cited for levying a cess, such as purposes of education, are important enough for direct budgetary allocations — as happens in the developed world. So the government can simply raise the tax rate rather than impose multiple cess levies. But with the Fourteenth Finance Commission increasing States’ share of the common pool of resources, cesses are tempting for the Centre to shore up its own finances. If it wants to keep complicating the taxation system for good intentions, the government should start disclosing a deployment plan to achieve the intended outcomes from cess collections before imposing the next such levy on citizens.

The Hindu, 25 December, 2015, http://www.thehindu.com/opinion/editorial/editorial-on-nda-governments-cess-on-taxable-services-for-the-swachh-bharat-campaign-cess-proceeds-in-a-black-hole/article802616

Tagged with: Comptroller and Auditor-General CAG Swachh Bharat Mission Levy Taxation Cess

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