Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Article Section

Home Articles Other Topics CA DEV KUMAR KOTHARI Experts This

Why Swachh Bharat Cess (SBC)? Why not to make cleaning resources more productive and effective, to improve Cleanliness, at substantially reduced costs?

Submit New Article
Why Swachh Bharat Cess (SBC)? Why not to make cleaning resources more productive and effective, to improve Cleanliness, at substantially reduced costs?
CA DEV KUMAR KOTHARI By: CA DEV KUMAR KOTHARI
February 3, 2015
All Articles by: CA DEV KUMAR KOTHARI       View Profile
  • Contents

Productivity, sincerity and honesty must be mool mantras of NAMO government:

In some articles published earlier author had stressed that productivity, sincerity, honesty must be mool mantra of any government to make impressive changes and achievement.

Raising funds vis a vis managing resources properly:

It may be easy for government to raise funds by imposing new taxes, however, before that attempt should be made to ensure that public money is properly utilized and there is minimal wastage due to any reason like idleness, misuse, pilferage, ghost workers, and overall corruption.

Reduction of idleness on resources, and improvement of productivity can reduce requirement of funds, and there will be surplus even without new levies.

Analysis of new report:

As per news reports government is planning to impose a special purpose cess which may be named like “Swachh Bharat Cess” (in short SBC) by way of amendment in law relating to Service Tax, in the forthcoming Annual Budget.  Report says “according to sources, The Finance Ministry proposes SBC seeking ₹ 1 lakh crore for Swachh Bharat Mission in five years. The Swachh Bharat cess may range between 0.02 to 0.05 per cent. The cess is likely to be levied on telecom SVCs and spectrum sale. Though the government may consider to impose cess on all services under service tax regime. It will be levied for a specific purpose for procuring machinery.

The cess may be used for cleanliness and infrastructure development also.

It is likely to be added to Swachh Bharat Kosh and the collection will be disbursed to the states, the sources said.

Why special cess- reduction of corruption can save a lot of money:

The activity of cleaning involves field work. In field work, controls are a bit more difficult than in case of offices or factories.

In cleaning work due to nature being field work, some wastage of manpower resources, machinery resources due to idleness, transportation time, difficulties in proper supervision are natural. However, there seems lot of scope of control of proper use of manpower, material and machines.

Public feeling:

Public feeling and common knowledge are that in government controlled    cleaning activities there is large scale pilferage of cleaning materials, cleaning tools and disproportionately higher idleness and non-existing workforce (ghost workers).

We notice that workers of municipality work hardly half the time they are supposed to in cleaning activities, we also notice that number of sweepers are generally much less than what should be. Only on some occasions (when there is inspection or special guests are on visit) we find full force. Otherwise  , as per public feeling there is large scale paid holidays for sweepers leading to ghost workers and idleness.

We find that municipal sweepers fire litter instead of carrying proper disposal. There is substantial expenditure for waste disposal by vehicles, however, by firing rubbish, litter (kachra) the amount spent on diesel for running waste disposal vehicles is siphoned.

Ghost workers, excess billing of material purchased, pilferage of cleaning material and tools appears to be rampant.

These need to be enquired, and improved.

No doubt it is impossible to remove corruption fully, however, even some reduction in corruption can make manpower, machinery and material more productive and more useful. 

Bharat ki swacchta ke liye swacchta departments ko swachh kare:

In most of government buildings we do not find cleanliness satisfactory. Government hospitals are also not exception.

This is for the reason that workers engaged in cleaning activities are not fully working, not properly working, there is lot of idleness, cleaning materials are not proper used - some waste occur, lot of pilferage may occur. It cannot be that government is not making proper allocation for cleaning in offices.  Reasonable amount is spent but it is not spent wisely and properly.

Working of workers engaged in cleaning activities and control over man, material, and machinery can reduce costs by about 40% and productivity can be increased by 30%. If that be achieved, with the same allocation of funds, there will be more cleanliness, and surplus of funds. There will be no need to raise further funds by way of special cess - SBC.


News Report:

CNBC

IBN Live - ‎30‎ ‎January‎ ‎2015

Swachh Bharat cess may be imposed by way of a Service Tax amendment

Provided by IBNLive

New Delhi: A Swachh Bharat cess is likely to be imposed by way of a Service Tax amendment in the forthcoming Annual Budget.

According to sources, The Finance Ministry proposes Swachh Bharat cess seeking ₹ 1 lakh crore for Swachh Bharat Mission.

The government hopes to mop up ₹ 1 lakh crore in five years. Service Tax amendment is likely to take place in the Budget Session.

The Swachh Bharat cess may range between 0.02 to 0.05 per cent. The cess is likely to be levied on telecom SVCs and spectrum sale.

The government mulls imposing cess on all services under service tax regime. It will be levied for a specific purpose for procuring machinery.

The cess may be used for cleanliness and infrastructure development also. It is likely to be added to Swachh Bharat Kosh and the collection will be disbursed to the states, the sources said.

 

By: CA DEV KUMAR KOTHARI - February 3, 2015

 

Discussions to this article

 

Very beautiful article Kothariji.

This article must be tagged to the PMO site.

CA DEV KUMAR KOTHARI By: RAJESH MANGAL AGRAWAL
Dated: February 4, 2015

 

 

Quick Updates:Latest Updates