The government has identified five “high end services”, bills in four and five star hotels for one which will attract additional service tax to fund PM Modi’s Swachh Bharat Campaign, leaving a big dent in your pocket. The government is expected to notify an additional 1% levy as against enabling provision of levying upto 2% cess over Service tax.
The government aims to raise 14,000 crores annually for the Swachh Bharat kosh,which include 1% cess on the five services. Levy of 200 tonn on coal, Details on other four services are not available.
The move to impose additional service tax is expected to fetch 2000 crore a year while coal is expected to generate around 6000 crore.