Union Budget 2018: Arun Jaitley proposes 4% health and education cess
Finance minister Arun Jaitley has increased the health and education cess by 4%to help BPL and rural families in the 2018 Union Budget.india Updated: Feb 01, 2018 15:25 IST
Finance Minister Arun Jaitley proposed to replace existing 3% education cess on personal income tax and corporation tax with a 4% ‘Health and Education Cess’ to take care the education and health needs of poor and rural families.
At present, a 3% cess, consisting of 2% cess for primary education and 1% cess for secondary and higher education, is levied on personal income tax and corporation tax.
“In order to take care of the needs of education and health of BPL and rural families... I propose to increase the cess by 1%. The existing three per cent education cess will be replaced by a 4% ‘Health and Education Cess’ to be levied on the tax payable.
“This will enable us to collect an estimated additional amount of Rs 11,000 crore,” Jaitley said while presenting the Budget 2018-19 in Parliament today.
Jaitley in his Budget speech also said that it has been decided that by 2022, every block with more than 50% Schedule Tribe (ST) population and at least 20,000 tribal persons will have an Ekalavya Model Residential School.