NEW DELHI: People will have to live with cesses and surcharges as it is not be possible for the government to eliminate them at present as has been advocated by the Economic Survey, Planning Commission member Saumitra Chaudhuri said.
"The reality is that they (cesses and surcharges) are there and if you make a change today it may have an immediate affect which you may not be able to compensate," he told PTI when asked whether the government can remove cesses and surcharges.
Agreeing that surcharge should be removed once the purpose for which it was imposed is over, Saumitra said the government may not be willing to remove them as of now in view of revenue considerations.
"They (surcharge) are imposed on income beyond a limit... The government may not be ...(willing to) change that at the moment. May be at future date yes. But not today," Chaudhuri said.
The Economic Survey which was tabled by the Finance Minister Pranab Mukherjee in Parliament ahead of the General Budget suggested "review and phasing out of surcharges, cesses and transaction taxes (such as commodities, transaction tax, securities transaction tax and Fringe Benefit Tax)".
The government imposes 10 per cent surcharge on income above Rs 10 lakh, besides education and road cesses the proceeds of which are used for funding sector-specific activities.