Fuel prices to go up cause of Swachh Bharat Abhiyan

After the government imposed a Swachh Bharat Abhiyan 0.5% cess on taxable services in November 2015 and now be ready to pay 0.

5% more for fuel as well. This may be implemented later in February if it clears with Finance Ministry.

Swachh Bharat mission that was launched on October 2, 2014, envisages an investment of nearly Rs 2.23 lakh crore by October 2019. The government imposed a 0.5% Swachh Bharat cess on taxable services from November 15.

The measures under consideration include a 0.5% cess on petrol, diesel and telecom services, a 1% cess on accumulated waste produced by mineral generation plants and a 0.5 percentage point increase in service tax. The government is also contemplating long-term, tax-free Swachh Bharat bonds to raise funds.

An announcement to this effect could be made in the February budget if it finds favour with the finance ministry. The proposals have been made by Niti Aayog, which has been in talks with states on Swachh Bharat.

“Government is considering all options to raise funds for the programme and one or more of these could be announced as we go forward,” the official said. The fund-raising recommendations are based on suggestions by a sub-group of chief ministers on Swachh Bharat set up by Niti Aayog.