Mumbai : Come April, your monthly bills are going to swell. The hike in service tax and education levy, which has been consolidated from from 12.36 per cent to 14 per cent, is going to impinge on your shopping, eating out, phone bills and purchase of property. Already, the Rail budget has jacked up freight charges for many consumables. And indications are that a ‘Swachh Bharat’ cess of two percent is also round the corner.
So, any activity that requires availing of service from another party will become expensive. That includes eating in a restaurant, staying in a hotel, air travel, cable and DTH services, courier service, credit and debit card related services, dry cleaning of clothes, stock broking, asset management and insurance. Not to forget a visit to a beauty parlor.
Ravi Soni, an IIT-B student from Pune, lamented: “The hike is quite steep when it comes to phone bills as well as eating-out. It will hit students who are living away from their families hard.”
Calling and Wi-fi internet usage will also become expensive and it is again youngsters who will suffer. “For me, eating out is not so much of an issue but calling will definitely be affected,” said Ashik Satheesh, 24, a TCS employee.
“The budget has left income tax slabs also untouched, so that the disposable income has not increased. At the same time, he has imposed a hike in service tax. This budget does not have anything for the common man,” said Arvind Digambar, 57, an LIC employee.
But even as the Finance Minister has made many items expensive, he has lowered the excise duty on many day-to-day items. These items would become cheaper and include expensive leather footwear costing more than Rs 1000 per pair, India-made mobiles, tablets, micro ovens, LEDs, mineral water, agarbatti, packaged fruit, peanut butter and ambulance service.
Incidentally, a visit to a museum, zoo, national park or a wildlife sanctuary will pinch less with the Finance Minister exempting such activities from the service tax.
EXPENSIVE: Cigarettes and other tobacco products; completely built imported commercial vehicles; cement; aerated, flavoured drinks and packaged water; plastic bags and sacks; business and executive class air travel; visit to amusement and theme park; music concerts; liquor, chit fund and lottery.
CHEAPER: Leather footwear priced above Rs 1,000 per pair; locally made mobile phones, LED/LCD panels, LED lights and LED Lamps; solar water heater; pacemakers, ambulance and ambulance services; tablet computers;
Agarbattis; microwave ovens; refrigerator compressors; peanut butter; packaged fruits and vegetables; visit to museums, zoos and national parks.
