Budget 2011: What it means for the consumer

Grocery bill of households is likely to increase by 4-5% within three months as companies have got no concessions to help stem the rising tide of input costs.

Excise Levy on Food Mixes: An excise levy of 1% will be imposed on items such as coffee and tea pre-mixes , sauces, ketchup, soups and broths, fruit pulp, fruit juicebased drinks, food mixes, ready-to-eat packaged foods and toothpowders. Since levy is small, it will not trigger price increases.

Hospital, Medical Bills to Rise: Medical bills, including diagnostic tests, will be 5% higher at private hospitals as the government brings these under the service tax net.

Now Pay More for Air Travel: Passengers to pay 50 more on domestic air travel and 250 on foreign travel because of a 2% increase in service tax.

Branded Garments to Cost More: Branded garments to cost a tenth more as retailers plan to pass on the 10% excise levy on such clothes to consumers.

Food Bills, Hotel Tariffs Slither up: Eating out in restaurants serving liquor will become 3% costlier. Staying in hotels with room rents higher than 1,000 will become 5% more expensive.

Excise on Sanitary Napkins Slashed: Excise on sanitary napkins and diapers cut to 1% from 10%. Prices unlikely to come down.
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Grocery Bills to Get Bigger: The consumer's grocery bill could increase by 4-5 % within three months, but not as a direct result of the budget. Companies say that they have received no concessions to help them stem rising costs and they are just about coping now by selling less for the same price and using cheaper raw materials. Increased expenses on packaging and transportation will put margins under further pressure.
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