New Delhi: Finance Minister Arun Jaitley on Saturday presented the first full-fledged Budget of the Narendra Modi government aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.
The government is planning to introduce Goods and Service Tax by April 1, 2016 and to facilitate a smooth transition to levy of tax on services by both the Centre and the states, it is proposed to increase the present rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%.
With the increase in service tax, the items which will be costly now are air conditioners, refrigerators, cigarettes, pan masala, hospital bills, courier services, restaurant bills, gym, laundry service, beauty parlor, spa, cable TV, architect's services, air travel, radio taxi travel, AC bus travel, cosmetics, mobile phone bills, watching movies in multiplex, medicines and IT products.
On the other hand some items will now become cheaper as well. The excise duty on leather footwear (footwear with uppers made of leather of heading 4107 or 4112 to 4114) of retail sale price of more than Rs 1000 per pair reduced from 12% to 6%.
Even health insurance products, other insurance products, biscuits, juice, processed foods, gold, LPG will be cheaper now.
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