Overall, it is looking at raising more than Rs 54,450 crore from five major cesses in 2016-17, an increase of Rs 23,116 crore over the revised estimate of Rs 31,335 crore in the current fiscal.

The new Krishi Kalyan cess will get Rs 5,000 crore from levy of 0.5 percent tax on all taxable services, like air travel, dining out and mobile bills. The levy of this cess has taken the effective levy of service tax to 15 percent, from 14.5 percent currently.

The cess, which will be effective from June 1, 2016, will help finance and promote initiatives to improve agriculture, Finance Minister Arun Jaitley said in his Budget speech. Besides, Infrastructure Cess has been imposed at the rate of 1 percent on small petrol, LPG, CNG cars, 2.5 percent on diesel cars of certain capacity and 4 percent on other higher engine capacity vehicles, SUVs and bigger sedans.

This will garner Rs 3,000 crore next fiscal. However, three wheelers, electrically-operated vehicles, hybrid vehicles, hydrogen vehicles based on fuel cell technology would be exempt from the infrastructure levy.

Besides, motor vehicles which after clearance have been registered for use solely as taxi, ambulances, cars for physically handicapped persons will also be exempt from this cess.

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