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Compensation cess causes jump in tax administration expenditure

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Compensation cess causes jump in tax administration expenditure
The expenditure on tax administration saw a huge jump to Rs. 777.5 billion in the FY18 Revised Estimates (RE) from just Rs. 126.9 billion in the Budget Estimatge (BE) of that year.
Further, it is projected to reach Rs. 1 Trillion in the FY 19 BE. This gave an impression that the government is incurring such a huge cost on tax administration.The finance ministry said expenditure on tax administration includes compnesation cess, which would ultimately got o the states and this was the reason behind such a huge jump.
of the Rs. 777.5 billion in RE of FY18, Rs. 613.3 billion is compensation cess. Similarly, Rs. 900 billion of over Rs. 1 trillion is compensation cess in BE of Fy 19. A companestaion Cess of the same amounts were also shown in the receipts of the government. As such, it is just a book entry, Finance Secretary Hasmukh Adhia said.
The Business Standard, New Delhi, 03rd February 2018

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