NEW DELHI (TIP): Finance Minister Arun Jaitley announced a host of changes in the tax structure in the Budget for 2016- 17 that made cars, cigarettes and air travel expensive, while footwear, solar lamps and routers are slated to be cheaper.
Jaitley on Monday imposed up to 15 per cent excise duty on all tobacco products.
Additional levy of Krishi Kalyan cess on all services, activities including eating out and payment of bills will also become more expensive. We take a look at things that became expensive and chepaer post-budget announcements:
| What become expensive
0.5 per cent Krishi Kalyan Cess on all taxable services with effect from 1st June, 2016 which will increase all services bills like – telephone, restaurant, school fees etc Increase in price for luxury cars – The budget has imposed a tax collected at source of 1 % on purchase of luxury cars exceeding value of INR 10 lakhs. Further, an Infrastructure cess has been levied as below – 1 per cent: Petrol/LPG/CNG driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1200cc 2.5 per cent: Diesel driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1500cc 4 per cent: Other higher engine capacity motor vehicles and SUVs and bigger sedans Tobacco and Tobacco Products Branded readymade garments and made up articles of textiles of retail sale price of Rs 1000 or more Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored Precious metals & Jewellery Aluminum foil Air Travel Plastic bags and sacks Ropeway, cable car rides Imported imitation jewellery Industrial solar water heater Legal services Lottery tickets Traveling by hiring stage carriage Hiring of packers & movers E-reading devices Instruments for VoIP (Voice over Internet Protocol) Imported Golf Cars Gold bars |
What becomes cheaper
Footwear Solar lamp Router, broadband modems and set top boxes, Digital video recorder and CCTV cameras Hybrid electric vehicles Sterilised dialyser Low cost houses with less than 60 sq mt carpet area Hiring of folk artists for performance Refrigerated containers Pension plans Microwave ovens Sanitary pads Braille paper |
“I am presenting the budget when the global economy is in crisis,” Jaitley said in his opening remarks, adding that India, however, remained the bright spot in this gloom, turning difficulties into opportunities.