New Delhi: Finance Ministry on Saturday ruled out any calamity cess on GST to raise resources for dealing with COVID-19 pandemic.
Denying categorically that there was no proposal for a calamity cess as reported in certain section of media in the wake of COVID-19 pandemic, sources in the ministry said in the present economic scenario, it would be an adversity itself.
The sources said sales are already at low volume and industry in deep crisis due to lockdown. Under the circumstances, tinkering with the taxes or cess would not be a prudent option at all. Any such measure would further dampen the consumers’ sentiments and weaken markets’ strength, especially when the Government is endeavouring its best to boost the consumption.
Besides, there will hardly be any long-term gain out of such a myopic measure, the sources said adding that none of the countries – developed or developing – have increased taxes to counter economic impacts of Covid-19, the sources said.