BJP, the true king of tax hikes

growing tax

The BJP which has authored the rise in service tax, increasing it to14 per cent from 12.36 per cent in 2015, has hardly any reason to protest the proposed hike in the property tax by the BBMP, karnataka. BJP, the true king of hikes and levies has absolutely no moral high ground to be staging protests, when they have been at the forefront of introducing some of the major Cesses to fund their own flagship programmes. The list of additional levies includes the Swachh Bharat Cess, the Krishi Kalyan Cess and the Infrastructure Cess.

The Krishi Kalyan Cess of 0.5 per cent will be levied on all taxable services with effect from June 1, 2016, to finance and promote initiatives to improve agriculture. The BJP government has projected to collect an aggregate of Rs. 5,000 through this tax in the financial year 2016-17. Krishi Kalyan Cess on all taxable services will increase service tax rate by 0.5 per cent to 15 per cent.

In addition, the BJP government had announced to levy infrastructure Cess at the rate of 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars not exceeding 4m in length and engine capacity of up to 1500cc. The Cess on all other higher engine capacity vehicles (SUVs and bigger sedans) would be levied at the rate of 4 per cent. The government has projected that it would collect an aggregate of Rs 3,000 crore through infrastructure cess in the financial year 2016-17.

These come in addition to the Swachh Bharat Cess that the government levied at the rate of 0.5 per cent on the value of taxable services with effect from 15 November 2015. Therefore within a period of last six months alone, the BJP government has levied three Cesses on individuals across the country. It’s high time the BJP stopped its double-talk on tax hikes. So far it seems in Karnataka, the BJP is a classic case of the rebel without a cause!

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