Understanding Cess in India - A Guide to the Types of Cess and How It Funds Government Programs

Cess is a tax that is levied on certain goods and services in India. It is a type of indirect tax that is collected by the central government and is used to fund various public expenditures.

Cess is different from other types of taxes, such as income tax or sales tax, because it is not a direct tax on income or wealth, but rather a tax on specific goods and services. For example, there may be a cess on luxury items like cars or air travel, or on certain types of alcoholic beverages.

The money collected from cess is used to fund specific government programs or projects, such as infrastructure development, education, or healthcare. The rate of cess varies depending on the type of good or service being taxed, and it is typically a small percentage of the total price of the item.

Some examples of cess in India include:

* Education cess: This is a cess that is levied on all taxpayers to fund education-related expenditures.
* Health cess: This is a cess that is levied on certain types of medical equipment and services to fund healthcare-related expenditures.
* Infrastructure cess: This is a cess that is levied on certain types of infrastructure projects, such as highways or airports, to fund the construction of these projects.

Overall, cess is an important source of revenue for the Indian government, and it helps to fund various public expenditures that are essential for the country's development.