Hike in service tax raises hackles among citizens

 In the light of the increased service tax, people are unhappy with the BJP government’s first budget. Many even went to the extent of saying they made a mistake by voting for Modi, as his government had promised ‘acche din’, which is far from reality and what has been offered in the budget.Here’s what some people Deccan Herald spoke to had to say:

There were rumours of the imposition of excise on readymade garments; this has been done and it is good. Rs 20,000 crore for micro finance is a welcome step. New IIT in Karnataka is also a welcome step. Two per cent surcharge imposed on the super rich with an income more than Rs one crore is again a welcome step.

Enhancement in service tax rates from 12.36 per cent to 14 per cent is a clear indication that in the first year, GST will be 18 per cent to 20 per cent, the states will have to rethink this. This will also add to inflation and common consumers will become the soft target.
Sajjan Raj Mehta, ex-president, Karnataka Hosiery and Garments Association

I am not happy with the budget. The service tax has been increased from 12.3 per cent to 14 per cent. The BJP government has rehashed the previous budget and not given us anything new as was promised during the elections.
Govind Chikkerur, 22, professional from Ocwen

I am not happy with what has been given. Increasing service tax means that everything will now become expensive. Also, the government has increased the duty on vehicles, but had reduced fuel rates earlier. Actually, reduction in fuel price depends on global markets, so there is not much benefit to the masses.
Raghavendra Nayak, 22

The government has increased the cost of food in restaurants which is not a good thing. Increase in service tax will automatically lead to a hike in the cost of everything. Making cigarette and alcohol expensive is the only good thing. But increasing the cost of packaged drinking water is not good.
Sharan R Rao, 23, employee, VFS Global

There should have been more medical benefits for senior citizens and women. There should be more subsidies. The pension and tax saving schemes could also have been much better. But one good thing that the government has done is to increase the tax on cigarettes and alcohol. This is important keeping the youth in mind. Increase in air fare does not affect the masses much because those who travel business class can afford to pay a little more.
Jayashree Shyam Sundar, senior citizen

Increasing service tax is more problematic for people as this means that everything will become costly. Eating in restaurants has become expensive which is not good, as I will be now paying more for the services than for the vegetables that I am eating. It is not a good budget for the common people.
Jyothi Shyam Sundar, entrepreneur