8 Types of Cesses And 4 Types of Surcharges Introduced Since 2014

In a written reply in the Rajya Sabha on 3 February 2026, the Ministry of Finance stated that since 2014 the Union Government has levied eight major cesses—Agriculture Infrastructure and Development Cess, Cess on Crude Oil, Cesses on Exports, Health Cess, Health and Education Cess, National Calamity Contingent Duty, Road and Infrastructure Cess, and GST Compensation Cess—along with four surcharges on corporation tax, non-corporate income tax, fringe benefit tax (residual), and the Social Welfare Surcharge under customs. Year-wise collections up to FY 2025–26 (BE) and utilisation details since FY 2020–21 were provided, showing that cess proceeds are credited to the Consolidated Fund of India and transferred through designated funds such as education, health, infrastructure, disaster response, oil industry development, agriculture infrastructure, and GST compensation mechanisms. The Government stated that these proceeds are used to support development and welfare schemes and that, in view of the constitutional framework and the utilisation data furnished, the question of diversion from stated purposes does not arise.

Cess vs Surcharge — Quick Explainer

In simple terms:
A cess is a tax-on-tax meant for a specific cause, while a surcharge is an extra tax to raise general government revenue without a dedicated spending tag.

Government of India
Ministry of Finance
Department of Revenue

RAJYA SABHA
UN-STARRED QUESTION NO-387
ANSWERED ON-03/02/2026

CESSES AND SURCHARGES INTRODUCED SINCE 2014

387. SHRI MALLIKARJUN KHARGE:

Will the Minister of FINANCE be pleased to state:

(a) the details of all Cesses and Surcharges introduced by the Union Government since 2014, along with the stated purpose of each;

(b) the year-wise funds collected from each of these cesses and surcharges in the last five years;

(c) the year-wise details of utilisation of these funds in the last five years;

(d) whether Government has ensured that the proceeds of each Cess and Surcharge were utilised only for the purposes for which they were imposed and if so, the details thereof; and

(e) if not, the reasons for any deviation from the stated purpose?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) & (b) : Year-wise detail of Collections of major cesses and surcharges (in operation) during FY 2014-15 to FY 2025-26 is enclosed as Annexure ‘A’.

(c) The details of the collections and utilizations under major cesses since FY 2020-21 is enclosed as Annexure ‘B’.

(d) Proceeds from the cesses and surcharges are collected and deposited in Consolidated Fund of India in terms of Articles 266 of the Constitution of India. The data in Annexure ‘B’ shows the utilization/transfer information regarding various cesses. Cess is utilized towards financing the development/welfare measures in the States through various Central Government schemes and initiatives.

(e) In view of (d) above, it does not arise.

******

Annexure A

Statement showing details of Cesses & Surcharges levied and collected as part of principal taxes

(₹ crore)

*Includes additional duty of excise on petrol and diesel, which were known as ‘road cess’ before introduction of ‘road and infrastructure cess’.

Annexure B

Collections and Utilizations under major Cesses’

1. Prarambhik Shiksha Kosh (PSK), Madhyamik and Uchchatar Shiksha Kosh (MUSK) and Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN)

(₹ crore)

#Reserve Funds viz Madhyamik & Uchhatar Shiksha Kosh (MUSK) and Pradhan Mantri Swastya Surakashi Nidhi (PMSSN) have been operationalized from F)’ 2022-23 after obtaining approval of C&AG in December, 2022. Amount transferred under MUSK during the F)’ 2018-19 to F)’ 2021-22; and under PMSSN during the F)’ 2020-21 to F)’ 2021-22 are as per Revised Estimate (RE) related to the respective year(s).

2. CENTRAL ROAD AND INFRASTRUCTURE FUND

(₹ crore)

*Includes additional duty of excise on petrol and diesel, which were known as ‘road cess’ before introduction of ‘road and infrastructure cess’.

3. NATIONAL DISASTER RESPONSE FUND

(₹ crore)

4. AGRICULTURE INFRASTRUCTURE & DEVELOPMENT FUND

(₹ crore)

* The Cess is being levied in pursuance of Finance Act, 2021.

5. OIL INDUSTRY DEVELOPMENT FUND

(₹ crore)

# The Cess is being levied under Oil Industry (Development) Act, 1974

^ The Reserve Fund in the Public Account of India has, however, been operationalized, going forward, from FY 2024-25.

*Collection data till FY 2022-23 is taken from Annual report 2022-23 of Oil Industry Development Board.

6. GOODS & SERVICES TAX COMPENSATION FUND