The Ministry of Indian Railways has signalled to make the journey more expensive for the common man. This time, Indian Railways is planning to charge safety cess on tickets from passengers in order to boost the revenue.
Hinting at imposing the safety-cess, Rail Minister Suresh Prabhu on May 15 said: “in order to raise fund for the passenger security the railways can plan a safety cess.” He also added that every passenger should contribute in Rail safety fund.
Indian Railways is already charging the service charge, Swacch Bharat Cess and Krishi Kalyan Tax from the passengers. Swachh Bharat Cess (SBC) is applicable on all taxable services at the rate of 0.5% of the value of service. This cess is levied towards the financing and promoting of the Swachh Bharat Abhiyan or Clean India Mission.
Krishi Kalyan Cess (KKC) was announced in Union Budget 2016 by Finance Minister Arun Jaitley. This cess applies to all taxable services at the rate of 0.5% of the value of service. It is levied over and above Service Tax and the SBC. Funds collected from this cess are used to improve the agricultural sector.
Earlier, despite continuous efforts from the Centre to make Indian Railways more productive, the public transport medium had recorded the ‘worst’ operating ratio in the last fiscal year. The Indian Railways has ended the financial year with its worst operating ratio in 16 years at 96.9 per cent.
Indian Railways is also considering to charge Rs 50-100 more on booking of lower berths. However, the amount is not finalised yet, the proposal is under consideration and may be finalised soon.
