Finance Minister Arun Jaitley presented the Union Budget for 2015-16 on Saturday. Here's the impact of indirect tax changes on individual consumers -
- Increase in the rate of service tax to 14 per cent from 12.36 per cent: To hurt individuals eating in restaurants, visiting saloons or theaters, amusement parks, engaging lawyers or chartered accountants or day-to-day telephone services.
- Hike in excise duty: Aerated beverages and cigarettes to be costlier; a step seen towards discouraging unhealthy lifestyle
- Duties brought down on parts of imported tablet computers, leather footwear costing above Rs 1,000: Both are set to become cheaper; a boost to 'Make in India' initiative.
- With increase in service tax, while insurance premiums would become costly, additional exemption has been provided on life insurance business provided under Varishtha Pension Bima Yojana
- Increase in tax base on airfare: Air travel to cost more
- The government is also paving way for imposing an additional 2 per cent cess as Swachh Bharat Cess; to be introduced in the near future (date to be notified)