Union Budget 2021: Centre may introduce COVID-19 cess, here's what you should know
New Delhi | Jagran Business Desk: Union Budget 2021 is around the corner and all eyes are on it as India looks to get back into growth territory after a catastrophic economic plunge due to COVID-19 pandemic in 2020. Due to lower revenue collection and higher expenditure, the task seems to be difficult for the Centre.
Also, the cost of COVID-19 vaccine will increase the government's expenditure this year. Keeping in mind the additional expenditure due to coronavirus, the government has discussed a coronavirus cess or surcharge, as per the Economic Times report.
The government have already held preliminary talks on revenue-raising measures, however, a final decision on whether to impose COVID-19 cess or surcharge will be taken by the end of the month.
Not just this, as per the Economic Times report, the discussion revolved around the cess on high-income earners along with some increase in indirect taxes. COVID-19 cess for high-income earners may become a possibility. Also, the government may add a cess to excise on petroleum and diesel on top of custom duties. COVID-19 cess for high-income individuals may become a possibility.
To support the economy, the Centre is also planning additional spending on the rural economy, infrastructure and the Atmanirbhart Bharat Rozgar Yojna on the next financial year, as per the reports.
Coming back to COVID-19, as per reports, the government is said to bear the massive cost of vaccination for a large chunk of the country’s population, which is starting from 16th January. The initial estimates suggested the expenditure on the vaccine rollout, including logistics cost, may cost between Rs 60,000-65,000 crore.
Meanwhile, India has granted emergency use authorisation to two vaccines namely Covaxin of Bharat Biotech and Oxfords's Covishiled manufactured by Serum Institue in India. Initially, the vaccine will be given to priority will be given to healthcare and frontline workers, followed by the people falling in the age group of above 50 years.
Posted By: Niharika Sanjeeiv