Definition
National Calamity Contingent Duty
The National Calamity Contingent Duty is a levy imposed on specified goods such as tobacco to fund disaster relief and management.
National Calamity Contingent Duty (NCCD) is a duty charged on certain goods, notably tobacco products and a few others, earmarked in spirit for funding the National Disaster Response Fund. It survived as a separate levy even after GST subsumed most indirect taxes.
Because it sits outside GST, NCCD adds to the total tax burden on the affected products and is revised in the Budget. It is an example of how the government uses targeted duties to both raise revenue and discourage consumption of harmful goods.
Related terms
- Cess vs SurchargeA cess is a tax levied for a specific earmarked purpose, while a surcharge is an additional tax on tax, usually on higher incomes, that is not earmarked.
- GST Compensation CessThe GST compensation cess is a levy on certain luxury and sin goods used to fund compensation to states for revenue losses arising from the move to GST.
- Customs DutyCustoms duty is the tax levied on goods imported into, or in some cases exported from, India, administered under the Customs Act.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.