In my previous column, I made some suggestions on reforming the Union ministry of finance. This included repeal of laws which have outlived their utility. Tax-related laws must be rational and serve the needs of the time. An area on which there is persistent ambiguity is cess.

Jas Bains says ?In modern terms, Cess is used to describe a tax on a tax. This meaning has been derived from Irish farmers, as those who have the most successful yield pay the most tax on their crop to the Government (Cess for assess).? In the Indian context, however, the Supreme Court, in a ruling in Shinde Brothers versus Commissioner, Raichur, 1967, says ?the word, Cess, means a tax and is generally used when the levy is for some special administrative expense? and various examples suggesting the name of the cess explains the object. While the cess for national highways and education are recent, and their use understandable, there are a multiplicity of small cesses being collected by a number of legislations, which we have all forgotten. Here is a list of small cesses being collected by a multitude of laws in 2003-04:

1. Cess on beedies: The Beedies Workers? Welfare Act, 1976. Amount collected: Rs 94.05 crore.

2. Cess on iron ore: Imposed on iron ore mines, manganese ore mines and chrome. The Mines Labour Welfare Cess Act, 1976. Amount collected: Rs 7.72 crore.

3. Cess on limestone and dolomite: The Limestone and Mines Labour Welfare Fund Act, 1972. Amount collected: Rs 16.49 crore.

4. Cess on feature films: The Cine Workers Welfare Cess Act, 1981. Amount collected: Rs 90,36,000. Objective: The above four welfare funds to be administered by the ministry of labour to provide housing, medical care, educational and recreational facilities to workers employed in the beedi industry, certain non-coal mines and cine workers.

5. Cess on coal and coke: Coal Mines (Conservation and Development) Act, 1974. Objective: provision for conservation and safety measures in coal mines and the development of road and rail transport infrastructure in coal mine areas. Amount collected: Rs 230 crore.

6. Cess on copra: Copra Cess Act, 1979. Objective: development of the coconut industry and matters connected therewith. Amount collected: Rs 9,000.

7. Cess on coffee: Coffee Act, 1942. Objective: Coffee Board implements various plan schemes for development of coffee, under which various types of finan- cial/technical assistance is provided to growers. Amount collected: Rs 50,000.

8. Cess on oil and oilseeds: Produce Cess Act, 1966. Amount collected: Rs 46,87,000.

9. Cess on vegetable oil: Ministry of agriculture Notification No. G.S.R. 882 (E), dated 8-12-1983. Amount collected: Rs 17,80,000.

10. Cess on jute: Jute Manufactures Cess Act, 1983. Objective: carrying out measures for the development of jute manufactures and matters connected therewith. Amount collected: Rs 40.37 crore.

11. Cess on rubber: Rubber Act, 1947. Objective: To give the minimum price to growers, for stabilising the rubber price. Amount collected: Rs 84.16 crore.

12. Cess on salt: Salt Cess Act, 1953. Objective: raising funds to meet expenses incurred on the salt organisation maintained by the government and the measures taken by it in connection with the manufacture, supply and distribution of salt. Amount collected: Rs 2.77 crore.

13. Cess on sugar: Sugar Cess Act, 1982. Obje-ctive: development of the sugar industry and matters connected. Amount collected: Rs 341.57 crore.

14. Cess on tea: Tea Act, 1953. Objective: Cess levied on tea goes to the Tea Board. Amount collected: Rs 26.86 crore.

15. Cess on cotton: Produce Cess Act, 1966. Objective: The proceeds are utilised to meet expenditure in connection with measures to promote the improvement, development and marketing of produce under the Act, which includes cotton. Amount collected: Rs 4,22,000.

16. Cess on textiles: Objective, to promote development of textiles, woollen fabrics, artsilk fabrics and manmade fabric. Amount collected: Rs 41.61 crore.

17. Handloom cess on rayon and artistic fabric: Textile Committee Act, 1963. Amount collected: Rs 3,000.

18. Handloom cess on woollen fabrics. Amount collected: Rs 22,000.

19. Handloom cess on cotton fabrics. Amount collected: Rs 9,12,99,000.

20. Handloom cess on man-made fabrics. Amount collected: Rs 54,000.

21. Cess on tobacco: Tobacco Cess Act, 1975. Objective: Cess collected under this Act goes to the Tobacco Board. Amount collected: Rs. 13,94,000.

22. Cess on paper: Industries (Development and Regulation) Act, 1951. Amount collected: Rs 18.39 crore.

23. Cess on Straw Board. Objective: to promote straw board industry. Amount collected: Rs 13,87,000.

24. Cess on automobiles. Objective: To promote the automobile sector. Amount collected: Rs 77.19 crore.

25. Cess on matches. Amount collected: Rs 37,000.

26. Cess on other commodities. Amount collected: Rs 2,77,000.

These 26 cesses, administered under 27 Acts, together yielded a princely sum of Rs 993 crore in 2003-04. In fact, the cess on copra yielded just Rs 9,000, while the handloom cess on rayon and artsilk fabric yields Rs 3,000. The cost in keeping records, both of their realisation and their expenditure, would in many cases exceed the amount collected from the cess.

Clearly, they have ceased to be relevant. Their repeal will clear the books, with little revenue consequence. The finance ministry should co-ordinate with administrative ministries for getting these repealed in the next Budget session. Continuing with the cesspool of cesses, whose collection and use we have forgotten, does not contribute to public good.