Indian Railways earn from Swachh Bharat cess on passengers, but it has no intention to spend it
Indian Railways: Minister of State for Railways Rajen Gohain said the amount collected as Swachh Bharat cess, at a rate of 0.5 per cent on service tax, in 2015-2016 to 2016-2017 was Rs 229.51 crore. The amount collected as Swachh Bharat cess, as part of the railways earnings, is remitted to the Ministry of Finance and no target spending from it is contemplated, Gohain said
The Indian Railways had earned more than Rs 200 crore from the Swachh Bharat cess on passengers in the last three years, but it had no plans of spending the money as it was remitted to the finance ministry, the government informed Parliament. In a written reply in the Rajya Sabha, Minister of State for Railways Rajen Gohain said the amount collected as Swachh Bharat cess, at a rate of 0.5 per cent on service tax, in 2015-2016 to 2016-2017 was Rs 229.51 crore.
"The amount collected as Swachh Bharat cess, as part of the railways' earnings, is remitted to the Ministry of Finance and no target spending from it is contemplated," he said. The minister added that the national transporter had spent Rs 1,008 crore from its own revenues in 2016-2017 on cleanliness-related activities, while it had earned Rs 166.43 crore from the Swachh Bharat cess during the period.
In 2015-2016, it had earned Rs 23.32 crore and in 2017-18 (till July, 2017), the earnings were Rs 39.76 crore from the Swachh Bharat cess. Government through A notification on November 6, 2017 had imposed Swachh Bharat cess on all taxable services. Railways’ upper class travel has become costlier because of the service tax levy of 14 per cent and a Swachh Bharat cess of 0.5 per cent.
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