The finance ministry has no plans to impose a calamity cess on the goods and services tax (GST) to raise resources for dealing with the Covid-19 pandemic. “There have been stories in the media claiming that the central government is considering a calamity cess on GST to tide over the economic crisis in the wake of Covid-19 pandemic,” sources said while dismissing the reports.
“In the present economic scenario in Covid-19 pandemic,any purported proposal of introducing a calamity cess would be nothing less than an adversity itself,” the source said.
They said any such proposal would be counter-productive at this time as sales are already at low volume. The industry is facing a deep crisis for want of demand and likely labour challenges that might come in future due to the pandemic. Therefore, tinkering with the taxes or cess would not be a prudent option, the sources said.