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March 17, 2012

Service Tax Hike to hit Common People


News Desk: Union Finance Minister Pranab Mukherjee is said to have disappointed people of India in the Union Budget 2012-13 hiking the service tax, which suggests that the budget is not for common man (Aam Aadmi). 


The budget was highly criticised and the experts have described it as hopeless and disappointing. The tax payers were expecting I-T exemption limit up to Rs 3 lakh. However, the exemption was raised to Rs 2 lakh. 


While a common man is still struggling in the regime of high price rise and high interest rate, the hike in service tax will definitely hit the common man's pocket. 


Pranab increased service tax from 10% to 12% and widened the service tax net by exempting just 12 services. The excise duty was also hiked by 2%. 


The hike in service tax suggested that the general commodities like TV, Fridge, AC, cars, Food, Mobile bills, electronic items, tobacco products, milk, milk products, branded cloths and branded jwellery etc will be costlier. 


It suggested that eating out, air travel and foreign trips will be costlier. For luxury cars, individuals will have to pay 24 per cent duty instead of 22 per cent. However, the Corporate Tax remained same.    


Pranab promised to moderate the inflation in few months, but the budget will increase the burden on the common men particularly in cities. 


While presenting the union budget 2012-13 in Lok Sabha on Friday, the Finance Minister referred a line from Shakespeare’s 'Hamlet': "I am Cruel to be Kind". His line was true and he appeared cruel for common men. 


Cheaper: Stock trade, processed food, ready-made garments, cancer and HIV medicines. 


Costlier: Big cars, ACs, Refrigerators, Phone bills, Restaurants, Cigarettes, Gold, Platinum, Diamond, Air Travel, Foreign Trips, Bidi, Gutkha, Paan Masala, Health Club, Fitness Centre, Cyber Cafe, Beauty Parlour, Hotel Stay, Gym. 

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