JOIN USCars, locally-made mobiles, branded garments, air travel, mineral water, aerated drinks, cigarettes and smart watches are the among items that will be costlier, while footwear, solar lamps and routers are slated to cost less due to changes in tax structure in the Budget 2016-17.
As a result of a new levy, Krishi Kalyan cess, on all services, activities including eating out, watching movies in theaters and payment of bills, will also become more expensive. Even the prices of all tobacco products will go up with the imposition of 15 per cent excise duty.
Potential car buyers will have to shell out more, from as low as Rs 3,000 to over Rs 1 lakh, on new purchases as Finance Minister Arun Jaitley announced infrastructure cess of up to 4 per cent on vehicles.
“The pollution and traffic situation in Indian cities is a matter of concern. I propose to levy an infrastructure cess, of 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on other higher engine capacity vehicles and SUVs,” Jaitley said.
Petrol / LPG / CNG-driven vehicles of length not exceeding 4 metres and engine capacity not exceeding 1,200cc would attract a cess of 1 per cent. Diesel-driven vehicles of length not exceeding 4 metre and engine capacity not exceeding 1,500cc will attract a cess of 2.5 per cent, while other higher engine capacity and SUVs and bigger sedans would be levied at 4 per cent.
Moreover, cars priced above Rs 10 lakh will also attract tax of 1 per cent at source.
“I also propose to collect tax at source at the rate of 1 per cent on purchase of luxury cars exceeding value of Rs 10 lakh and purchase of goods and services in cash exceeding Rs two lakh,” Jaitley added.
Even air travel will become expensive due increase in excise duty on aviation turbine fuel (ATF).
Soft drinksSoft drinks and mineral water will also be dearer as Jaitley proposed to hike excise duty on “water including mineral water, aerated water containing added sugar or sweetening matter” to 21 per cent from 18 per cent earlier.
Branded ready-made garments costing Rs 1,000 or more will become costlier as the excise duty on them has been increased to 2 per cent without CENVAT credit from nil earlier.
Customs duty on imported imitation jewellery and industrial solar water heater has increased. Locally manufactured mobiles will become costlier by about 1 per cent because government has imposed duty on imported circuit boards used in them.
Legal services to cost moreAvailing of legal services through senior advocates or legal firms will cost more as such activity will no longer be exempted from service tax with Jaitley proposing a levy of 14 per cent.
Travelling by hiring air-conditioned stage carriage, hiring of agency to pack and move household items and shifting premises, imported golf cars, lottery tickets, imported e-reading devices will be expensive. Other items that will become dearer include instruments for VoIP (Voice over Internet Protocol) and refined gold bars manufactured from gold dore bars.
CheaperOn the other hand, footwear, solar lamps, router, broadband modems and set top boxes will become cheaper.
Digital video recorder and CCTV cameras, hybrid electric vehicles, micro-ovens produced in the country became cheaper.
In order to bring down the cost of kidney dialysis of patients suffering from end-stage renal disease, excise duty on disposable sterilised dialyser from been reduced to NIL from 12.5 per cent earlier.