Why in News?
The Himachal Pradesh government has imposed a 60 paise per litre cess on petrol and high-speed diesel to support welfare schemes for orphaned children and widows.
About Cess?
- Cess is a tax imposed by the government for a specific purpose. Unlike general taxes, the revenue collected through a cess is earmarked for the purpose for which it is imposed.
- Cess is purpose-specific, meaning the revenue collected is intended for a designated objective.
- It is generally imposed over and above existing taxes. Cesses and surcharges collected by the Centre are not included in the divisible pool of taxes shared with States.
- The revenue generated through a cess is used to support the specific purpose for which it was introduced.