New Delhi: Finance minister Arun Jaitley has proposed to hike service tax rate to 14 percent from 12.36 percent to be effective by April 1, 2015. All consumers will be affected because they are the final users of many services like cable, restaurant, mediclaim premium, vehicle premium, courier, consultancy, and many more. Sops have been introduced for hybrid and electric cars, while high-end imported luxury cars will attract higher custom duties. Increase in number of IITs, IIMs and AIIMS will benefit students as they will be developed at state level. Finance Minister Arun Jaitley has also proposed to exempt service tax extended to pre-cold storage warehousing, while also proposing to withdraw service tax exemption on mutual funds agents to AMCs.