Cess. What would you if you were The Country?

Financial jargon simplified and contemplated on-


If just like me Cess is a new term to you, then read on, else skip to the contemplation part directly.


Cess is a form of tax levied over and above the base tax liability of a taxpayer imposed additionally when the state or the central government looks to raise funds for ๐‘ ๐‘๐‘’๐‘๐‘–๐‘“๐‘–๐‘ ๐‘๐‘ข๐‘Ÿ๐‘๐‘œ๐‘ ๐‘’๐‘ .

For example, the government levies an education cess to generate additional revenue for funding primary, secondary, and higher education.

Some examples of Cess-

  • Education Cess
  • Health and education cess
  • Swachh Bharat Cess
  • Krishi Kalyan Cess
  • Infrastructure Cess


“๐ถ๐‘’๐‘ ๐‘  ๐‘–๐‘  ๐‘›๐‘œ๐‘ก ๐‘Ž ๐‘๐‘’๐‘Ÿ๐‘š๐‘Ž๐‘›๐‘’๐‘›๐‘ก ๐‘ ๐‘œ๐‘ข๐‘Ÿ๐‘๐‘’ ๐‘œ๐‘“ ๐‘Ÿ๐‘’๐‘ฃ๐‘’๐‘›๐‘ข๐‘’ ๐‘“๐‘œ๐‘Ÿ ๐‘กโ„Ž๐‘’ ๐‘”๐‘œ๐‘ฃ๐‘’๐‘Ÿ๐‘›๐‘š๐‘’๐‘›๐‘ก, ๐‘Ž๐‘›๐‘‘ ๐‘–๐‘ก ๐‘–๐‘  ๐‘‘๐‘–๐‘ ๐‘๐‘œ๐‘›๐‘ก๐‘–๐‘›๐‘ข๐‘’๐‘‘ ๐‘คโ„Ž๐‘’๐‘› ๐‘กโ„Ž๐‘’ ๐‘๐‘ข๐‘Ÿ๐‘๐‘œ๐‘ ๐‘’ ๐‘™๐‘’๐‘ฃ๐‘ฆ๐‘–๐‘›๐‘” ๐‘–๐‘ก ๐‘–๐‘  ๐‘“๐‘ข๐‘™๐‘“๐‘–๐‘™๐‘™๐‘’๐‘‘.”

“๐ผ๐‘“ ๐‘กโ„Ž๐‘’ ๐ถ๐‘’๐‘ ๐‘  ๐‘๐‘œ๐‘™๐‘™๐‘’๐‘๐‘ก๐‘’๐‘‘ ๐‘–๐‘› ๐‘Ž ๐‘๐‘Ž๐‘Ÿ๐‘ก๐‘–๐‘๐‘ข๐‘™๐‘Ž๐‘Ÿ ๐‘ฆ๐‘’๐‘Ž๐‘Ÿ ๐‘”๐‘œ๐‘’๐‘  ๐‘ข๐‘›๐‘ ๐‘๐‘’๐‘›๐‘ก, ๐‘–๐‘ก ๐œ๐š๐ง๐ง๐จ๐ญ ๐‘๐‘’ ๐‘Ž๐‘™๐‘™๐‘œ๐‘๐‘Ž๐‘ก๐‘’๐‘‘ ๐‘“๐‘œ๐‘Ÿ ๐‘œ๐‘กโ„Ž๐‘’๐‘Ÿ ๐‘๐‘ข๐‘Ÿ๐‘๐‘œ๐‘ ๐‘’๐‘ . ๐‘‡โ„Ž๐‘’ ๐‘Ž๐‘š๐‘œ๐‘ข๐‘›๐‘ก ๐‘”๐‘’๐‘ก๐‘  ๐‘๐‘Ž๐‘Ÿ๐‘Ÿ๐‘–๐‘’๐‘‘ ๐‘œ๐‘ฃ๐‘’๐‘Ÿ ๐‘ก๐‘œ ๐‘กโ„Ž๐‘’ ๐‘›๐‘’๐‘ฅ๐‘ก ๐‘ฆ๐‘’๐‘Ž๐‘Ÿ ๐‘Ž๐‘›๐‘‘ ๐‘๐‘Ž๐‘› ๐‘œ๐‘›๐‘™๐‘ฆ ๐‘๐‘’ ๐‘ข๐‘ ๐‘’๐‘‘ ๐‘“๐‘œ๐‘Ÿ ๐‘กโ„Ž๐‘’ ๐‘๐‘Ž๐‘ข๐‘ ๐‘’ ๐‘–๐‘ก ๐‘ค๐‘Ž๐‘  ๐‘š๐‘’๐‘Ž๐‘›๐‘ก ๐‘“๐‘œ๐‘Ÿ.”

Firstly, it’s not a permanent source, so unlike introducing any normal tax, which usually means a change in the law, introducing Cess is comparatively simpler.

Secondly, the fund can not be allocated for other purposes and is carried over for the same purpose compulsively instead.

The two statements mentioned above might make “Cess” a potentially powerful tool to leverage and raise money but also makes it equally risky.

Fundraised for a specific purpose might not be utilised in the expected timeline for variety of reasons and that causes a huge disruption in the flow of capital (which is its major strength) and also deteriorates with what is called “time value of money.”

๐€ ๐œ๐š๐ฉ๐ข๐ญ๐š๐ฅ ๐ซ๐š๐ข๐ฌ๐ž๐ ๐Ÿ๐ซ๐จ๐ฆ ๐ก๐š๐ซ๐-๐ž๐š๐ซ๐ง๐ž๐ ๐ญ๐š๐ฑ ๐ญ๐จ๐๐š๐ฒ ๐ฆ๐ข๐ ๐ก๐ญ ๐›๐ž “๐Ÿ“% ๐ฅ๐ž๐ฌ๐ฌ ๐ฉ๐จ๐ฐ๐ž๐ซ๐Ÿ๐ฎ๐ฅ” ๐ญ๐ก๐ž ๐ฏ๐ž๐ซ๐ฒ ๐ง๐ž๐ฑ๐ญ ๐ฒ๐ž๐š๐ซ.

Moreover, if the easier transfer of allocation is permitted, it makes it much simpler to raise large funds for one purpose, transfer the purpose, leaving some proportions in a conundrum.

With the amounts being massive– to give you a perspective– imagine what you can on your behalf and scale it up by a factor of 1.3 billion and that is huge already. Managing so much with a constrained yet efficient way is the challenge for you to contemplate on. (If we choose an unbridled way then making it fair is yet another challenge)

๐–๐ก๐š๐ญ ๐ฐ๐จ๐ฎ๐ฅ๐ ๐ฒ๐จ๐ฎ ๐๐จ ๐ข๐Ÿ ๐ฒ๐จ๐ฎ ๐ฐ๐ž๐ซ๐ž ๐“๐ก๐ž ๐‚๐จ๐ฎ๐ง๐ญ๐ซ๐ฒ?

Keep Cess transferable? or Eliminate Cess overall and divert to increasing traditional taxes instead? or Would eradicate the 1-year rollover criteria?

Something I would do might seem out of the box, but use this as a pivot to create a bidirectional channel for tax.

What I mean by that is rather than trapping the capital, I’d somehow “๐ซ๐ž๐ญ๐ฎ๐ซ๐ง” (yes return) it in a case the purpose of Cess is incomplete or terminated altogether. Something like the Aadhar network can be utilised to keep a track and practically return it instead. Open to discussion for this.

๐–๐ก๐š๐ญ ๐ฐ๐จ๐ฎ๐ฅ๐ ๐ฒ๐จ๐ฎ ๐๐จ ๐ข๐Ÿ ๐ฒ๐จ๐ฎ ๐ฐ๐ž๐ซ๐ž ๐“๐ก๐ž ๐‚๐จ๐ฎ๐ง๐ญ๐ซ๐ฒ?

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