Budget gives jitters to young

MONEY MATTERs

Finally, the wait is over and the ‘common man’s budget’ is here. Our finance minister P Chidambaram presented the General Budget and this time targeted the ‘super-rich’ individuals and corporates and imposed a 10 per cent surcharge. Besides, a new tax on land and house transfer has been levied, while duty on mobile phones, cigarettes and luxury vehicles has been raised.

The government has also targeted ‘luxuries’ like SUVs’ and mobile phones. And those who are in habit of smoking will have to shell out more. The excise duty on all these products has been raised. However, ready-made garments will come at cheaper rates. Will it make a difference to the youth? Metrolife finds out.

Deep Kumar, who works for an MNC and is a cigarette addict, says, “It was an open secret before the budget that the rates of cigarettes will be increased. It is done every year. Either alcohol or cigarette’s rates are hiked because the government promotes good health.”

“As a consumer, this would hardly be a hindrance for me. The union budget is made keeping in mind the upcoming general election next year as the government is already in a soup because of the scams. They didn’t want to touch the middle and lower middle class strata of the society,” he adds.

Also, sports utility vehicles (SUVs), imported cars and motorcycles, high-end mobile phones, eating out at air-conditioned restaurants will be costlier. Talking about this, Anuj Mishra, who owns a Sports utility vehicle (SUV) and soon want to change the wheels, shares his views. “I was planning to buy a Fortuner. But I will rethink now because I will have to shell out extra because the excise duty has been increased.”
This increase has come as a surprise for the industry also.

Michael Perschke, Head, Audi India, says, “Hike of excise duty on SUVs is very surprising. It will severely impact the auto industry and its growth. We will have to seriously evaluate the impact of this hike on our prices and have no choice other than to pass on the increase to the customer.”

Excise duty on mobile phones of above Rs 2,000 has been raised to six per cent but the concessional excise duty of one per cent has been kept unchanged in the case of low priced phones. Planning to buy a new phone after the launch the new Z10 by BlackBerry, Parul Suneja says, “The phone is already costs than Rs 40, 000 and now more addition. I saved money for it but now this latest development will make a big hole in my pocket.”