Day-to-day items to cost more; luxury cars to turn dearer
Cigarettes and bidis will also become dearer as the Finance Minister, Pranab Mukherjee, has proposed to tax these items more.
With service tax being hiked to 12 per cent from the existing 10 per cent except in a few items, common man will have to pay more while travelling by air or hiring a law firm. Mr Mukherjee proposed to increase the excise duty on all non-petroleum products, excepting a few, to 12 per cent from the existing 10 per cent.
On the other hand, items like imported LCD and LED TV panels of about 20 inches will have lesser increase in price due to excise duty hike. Customs duty on these items has been removed. Similar is the case with LEDs used for making lamps.
Prices of life-saving drugs, probiotics and iodine have been cushioned from a steep rise as the import duties on these items have been reduced. Branded garments will escape the impact of increase in excise duty as abatement has been provided.