Railway freight and upper class passenger fares (air-conditioned passengers and first class) are set to cost more from November 15 – courtesy the Swachh Bharat Cess, which will leave the effective tax rate at 4.35 per cent. However, the additional levy will not apply to rail tickets booked before November 15, an official statement had clarified earlier. Interestingly, the cleanliness cess comes at a time when the Indian Railways could do with lower fares to ward off competition from road transport and airlines, sector observers said. The Swachh Bharat cess announced recently is to be levied only on the portion of taxable services (after abatement), The proceeds will go toward funding the cleanliness drive.
Mamuni.das@thehindu.co.in