<p>With Union Finance Minister Nirmala Sitharaman all set to present Budget 2023, it is important to understand what cess means. </p>.<p>Cess is a type of tax that is charged/levied in addition to a taxpayer's base tax liability. When the state or the federal government needs to gather cash for a specific purpose, a cess is frequently levied in addition.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/union-budget/budget-2023-what-is-direct-tax-1180301.html" target="_blank">Budget 2023 | What is direct tax? </a></strong></p>.<p>Cess is not a long-term source of revenue for the government, and it is phased out after the goal for which it was imposed is met. It can be applied to indirect as well as direct taxes.</p>.<p>Cess is distinct from other taxes such as income tax, GST, and excise duty since it is levied in addition to other taxes. While all taxes are paid to the Consolidated Fund of India (CFI), cess may be paid to the CFI at first, but it must be used for the purpose for which it was collected.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/union-budget/budget-2023-what-is-indirect-tax-1180308.html" target="_blank">Budget 2023 | What is indirect tax? </a></strong></p>.<p>If the cess collected in a given year is not spent, it cannot be used for anything else. The funds are carried over to the following year and can only be utilised for the purpose for which they were intended. Unlike certain other taxes, the central government does not have to split the cess with the states, either partially or entirely.</p>
<p>With Union Finance Minister Nirmala Sitharaman all set to present Budget 2023, it is important to understand what cess means. </p>.<p>Cess is a type of tax that is charged/levied in addition to a taxpayer's base tax liability. When the state or the federal government needs to gather cash for a specific purpose, a cess is frequently levied in addition.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/union-budget/budget-2023-what-is-direct-tax-1180301.html" target="_blank">Budget 2023 | What is direct tax? </a></strong></p>.<p>Cess is not a long-term source of revenue for the government, and it is phased out after the goal for which it was imposed is met. It can be applied to indirect as well as direct taxes.</p>.<p>Cess is distinct from other taxes such as income tax, GST, and excise duty since it is levied in addition to other taxes. While all taxes are paid to the Consolidated Fund of India (CFI), cess may be paid to the CFI at first, but it must be used for the purpose for which it was collected.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/union-budget/budget-2023-what-is-indirect-tax-1180308.html" target="_blank">Budget 2023 | What is indirect tax? </a></strong></p>.<p>If the cess collected in a given year is not spent, it cannot be used for anything else. The funds are carried over to the following year and can only be utilised for the purpose for which they were intended. Unlike certain other taxes, the central government does not have to split the cess with the states, either partially or entirely.</p>