Budget Special | Here is list of what becomes expensive and cheaper

NEW DELHI (TIP): Finance Minister Arun Jaitley announced a host of changes in the tax structure in the Budget for 2016- 17 that made cars, cigarettes and air travel expensive, while footwear, solar lamps and routers are slated to be cheaper.

Jaitley on Monday imposed up to 15 per cent excise duty on all tobacco products.

Additional levy of Krishi Kalyan cess on all services, activities including eating out and payment of bills will also become more expensive. We take a look at things that became expensive and chepaer post-budget announcements:

What become expensive

0.5 per cent Krishi Kalyan Cess on all taxable services with effect from 1st June, 2016 which will increase all services bills like – telephone, restaurant, school fees etc

Increase in price for luxury cars – The budget has imposed a tax collected at source of 1 % on purchase of luxury cars exceeding value of INR 10 lakhs. Further, an Infrastructure cess has been levied as below –

1 per cent: Petrol/LPG/CNG driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1200cc

2.5 per cent: Diesel driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1500cc

4 per cent: Other higher engine capacity motor vehicles and SUVs and bigger sedans

Tobacco and Tobacco Products

Branded readymade garments and made up articles of textiles of retail sale price of Rs 1000 or more

Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored

Precious metals & Jewellery

Aluminum foil

Air Travel

Plastic bags and sacks

Ropeway, cable car rides

Imported imitation jewellery

Industrial solar water heater

Legal services

Lottery tickets

Traveling by hiring stage carriage

Hiring of packers & movers

E-reading devices

Instruments for VoIP (Voice over Internet Protocol)

Imported Golf Cars

Gold bars

What becomes cheaper


Solar lamp

Router, broadband modems and set top boxes, Digital video recorder and CCTV cameras

Hybrid electric vehicles

Sterilised dialyser

Low cost houses with less than 60 sq mt carpet area

Hiring of folk artists for performance

Refrigerated containers

Pension plans

Microwave ovens

Sanitary pads

Braille paper

“I am presenting the budget when the global economy is in crisis,” Jaitley said in his opening remarks, adding that India, however, remained the bright spot in this gloom, turning difficulties into opportunities.



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