Centre Targets Significant Growth in Cess and Surcharge Collections for FY26

The Centre is aiming for a significant boost in revenue from cess collections, targeting over Rs 4.18 lakh crore in the current fiscal year, marking an 8% increase from the Union Budget FY25 Revised Estimates (RE). This was disclosed to Parliament on Tuesday.

Additionally, revenue from surcharges is projected to grow by 13%, reaching over Rs 1.72 lakh crore during the 2025-26 fiscal year. In a written response in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary explained that cess and surcharges, imposed under Article 271 of the Constitution, fund specific initiatives like Centrally Sponsored Schemes, with indirect benefits to the states.

The budgeted figures for FY26 show a rise from Rs 3.87 lakh crore in cess collections and Rs 1.53 lakh crore in surcharge collections as per FY25's RE. Notably, these collections are outside the divisible pool that splits revenues between the Centre and states. The country currently imposes 8 various cesses, including those on agriculture, crude oil, and exports, while surcharges are applicable to corporate and income tax, and social welfare under Customs.

(With inputs from agencies.)