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mid-day editorial: The stress over cess is justified

The introduction of 0.5 per cent Krishi Kalyan Cess – which was announced in the budget and takes the cumulative tax on services to 15 per cent – has been received with a lot of bitterness, especially by the middle class

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The introduction of 0.5 per cent Krishi Kalyan Cess – which was announced in the budget and takes the cumulative tax on services to 15 per cent – has been received with a lot of bitterness, especially by the middle class. A mere 0.5 per cent, which works out to 50 paise per hundred rupees, is not going to burn a big hole in anybody’s pocket. While nobody is grudging the small cess, what really seems to have riled the salaried middle class is the timing of the roll out.

The cess came a day after petrol price was hiked by Rs 2.58 and diesel by Rs 2.26, just two weeks after the previous hike. Then there was the increase of non-subsidized LPG cylinders by Rs 21. Capping it all, was the increase in aviation turbine fuel prices, which meant air travel will cost more.

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