Addional cess will be imposed next month, increasing burden
Lucknow: Be prepared for loosening your wallet further from next month. A point five per cent additional cess will be imposed from the first of June. The new levy described as farmers welfare cess will be charged in addition to cleaniness cess of the similar order
These two levies will be added to the service tax which will then go up to 15 per cent from 14. All services including air travel, eating out and rail journey will become costlier.
The additional burden is bound to be opposed by all sections of the people." Our business is already down. Fewer people are coming to the restaurant because of inflation. The new measure will cause further loss to us", said a hotelier who would not like to be identified.
A house-wife, Sabita Devi, has another worry. " This may lead to general increase in prices. That will hurt us" said the mother of two unemployed daughters
In defence, the government may say that it has not done anything new. It was announced as a part of the budget proposals in February last.