Budget 2012: This Budget is not a great friend of Indian consumer
Unbranded gold jewellery will attract a 1% ad valorem excise duty, putting it in the same bracket as its branded counterpart.
By ET Bureau |
What it means for consumer
All that Glitters is Dearer
Unbranded gold jewellery will attract a 1% ad valorem excise duty, putting it in the same bracket as its branded counterpart. Standard gold and platinum bars will attract a 4% customs duty, double the previous level. Customers will now have to fork out at least Rs 250 more on unbranded jewellery of 10 gm and Rs 550 more on gold bars of 10 gm.
Twin Strikes of Excise and Service Tax
The proposals to tax all services except those on a negative list, to hike service tax and excise duty rate from 10% to 12% will increase prices of a host of goods and services, from soaps to airline tickets. Small cars will be costlier by up to Rs 20,000. A 1.5-tonne, 3-star split AC will be dearer by Rs 1,000.
Budget at ET : Budget 2012 | Union Budget | Live Union Budget Blog | Railway Budget | Budget News | Economic Survey of India
Not Much for Rural Consumers
Any boost comes from higher farm incomes or welfare payments. Farm credit is to be hiked by 17%, or Rs 1,00,000 crore, but statistics show more loans are not increasing agri productivity. On handouts, the allocation for NREGS, the largest scheme, is down by 17.5% to Rs 33,000 crore. And cash transfers are still at least a year away.
Low-cost Homes will be Cheaper
Another Battle for Cattle Class
All that Glitters is Dearer
Unbranded gold jewellery will attract a 1% ad valorem excise duty, putting it in the same bracket as its branded counterpart. Standard gold and platinum bars will attract a 4% customs duty, double the previous level. Customers will now have to fork out at least Rs 250 more on unbranded jewellery of 10 gm and Rs 550 more on gold bars of 10 gm.
Twin Strikes of Excise and Service Tax
The proposals to tax all services except those on a negative list, to hike service tax and excise duty rate from 10% to 12% will increase prices of a host of goods and services, from soaps to airline tickets. Small cars will be costlier by up to Rs 20,000. A 1.5-tonne, 3-star split AC will be dearer by Rs 1,000.
Budget at ET : Budget 2012 | Union Budget | Live Union Budget Blog | Railway Budget | Budget News | Economic Survey of India
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Not Much for Rural Consumers
Any boost comes from higher farm incomes or welfare payments. Farm credit is to be hiked by 17%, or Rs 1,00,000 crore, but statistics show more loans are not increasing agri productivity. On handouts, the allocation for NREGS, the largest scheme, is down by 17.5% to Rs 33,000 crore. And cash transfers are still at least a year away.
Low-cost Homes will be Cheaper
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Developers can access cheaper foreign loans and home buyers will get easier funding, thanks to a Credit Guarantee Trust Fund and more money going into the Rural Housing Fund, a scheme set up to provide rural housing refi nance. A tax rebate of 1% on housing loans up to Rs 15 lakh has been extended for another year. Low-cost homes stay out of the service tax net.Another Battle for Cattle Class
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Ailing airlines got sops, but not enough to pass them on to fl iers. A 2% increase in service tax will raise ticket prices by Rs 70 to Rs 100, says Centre for Asia Pacifi c Aviation. The hike will make overheads (advertising, utilities, rents) costlier for airline companies, says KPMG. Excise duty hike will make aviation fuel and domestic spare parts costlier.Start a SIP with as low as ₹500 with ET Money App!
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