Key points:
- The government is considering a COVID cess to help increase revenue ahead of Budget 2021. A call on the new cess or surcharge is likely to be taken in the coming weeks.
- The discussion revolved around the cess on high-income earners along with some increase in indirect taxes.
- The initial estimates suggested the expenditure on the vaccine rollout, including logistics cost, may cost between Rs 60,000-65,000 crore.
- India has granted emergency use authorisation to two vaccines namely Covaxin of Bharat Biotech and Oxfords’s Covishiled manufactured by Serum Institue in India.
Ahead of Budget 2021, India is mulling imposition of an additional COVID cess or surcharge on high income earners. This could be to meet the increased expenditure due to the pandemic and the upcoming vaccination drive. Keeping in mind the additional expenditure due to coronavirus, the government has discussed a coronavirus cess or surcharge, as per the reports.
The government have already held preliminary talks on revenue-raising measures, however, a final decision on whether to impose COVID-19 cess or surcharge will be taken by the end of the month.
The discussion revolved around the cess on high-income earners along with some increase in indirect taxes. COVID-19 cess for high-income earners may become a possibility. Also, the government may add a cess to excise on petroleum and diesel on top of custom duties. COVID-19 cess for high-income individuals may become a possibility.
To support the economy, the Centre is also planning additional spending on the rural economy, infrastructure and the Atmanirbhart Bharat Rozgar Yojna on the next financial year, as per the reports.
Coming back to COVID-19, as per reports, the government is said to bear the massive cost of vaccination for a large chunk of the country’s population, which is starting from 16th January. The initial estimates suggested the expenditure on the vaccine rollout, including logistics cost, may cost between Rs 60,000-65,000 crore.
Meanwhile, India has granted emergency use authorisation to two vaccines namely Covaxin of Bharat Biotech and Oxfords’s Covishiled manufactured by Serum Institue in India. Initially, the vaccine will be given to priority will be given to healthcare and frontline workers, followed by the people falling in the age group of above 50 years.
