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The Centre has imposed a Swachh Bharat cess of 0.5 per cent on all services that currently incur service tax. This levy, which will be effective from November 15, translates into a tax of 50 paisa on every ₹100 worth of taxable services.
The proceeds from this cess will be used for Swachh Bharat initiatives, an official release said. In this year’s Budget, a provision was made for levy of a Swachh Bharat Cess on all or any of the specified services.
The government’s health expenditure adds up to ₹6,700 crore annually (about ₹60 per capita). Increased allocation for the Swachh Bharat Abhiyan can prevent many diseases such as malaria, dengue, jaundice and cholera, the release added.
A study by the American Journal of Tropical Medicine and Hygiene reveals that between 2006 and 2012, India reported an annual average of 20,474 dengue cases, with direct medical costs of about ₹3,500 crore a year.
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