"Tsunami cess will further increase the already high tax rates. Besides, there is already national calamity contingent duty by way of excise duty on selected goods," CII said in response to a questionnaire sent by PTI on the upcoming budget.

FICCI president Onkar S Kanwar said the chamber is per-se not in favour of imposing any cess and it has to be avoided as nowhere in the world does this practice exists.

PHDCCI said it does not favour levying of the Tsunami cess since any cess only enhances the effective tax rate.

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ASSOCHAM, however, said cess for Tsunami relief would not invite criticism. Economists too joined India Inc in opposing Tsunami cess. National Institute of Public Finance and Policy Director M Govinda Rao said it would be inappropriate to have a cess for "every problem that we face".

"That will only segment the tax system. The money will have to be provided by the consolidated fund," Rao said.

NCAER fellow Devendra Kumar Pant said he does not think that Tsunami cess will be implemented, especially when there are liberal loans from the World Bank and ADB.

ICRA executive director Amul Gogna said,"a cess on taxes (like the Tsunami cess) may defy the logic of making the tax structure free of concessions and surcharges."