New Delhi: Budget 2012, presented by Finance Minister Pranab Mukherjee makes branded clothes, footwear, mobiles phones and LCD TVs cheaper. Also apart from cheaper imported medical equipment, prices of HIV and cancer medicines are to go down too.
But two and four wheelers will get more expensive so are refrigerators, ACs, washing machines, watches, cosmetics and tobacco products.
Also biting hard is air travel, hotel stay and eating out will get dearer. Also, increase in service tax will increase your mobile bills by 2 per cent every month.
Prices of life saving drugs, probiotics and iodine have been cushioned from a steep rise as import duties on these items have been reduced.
Branded garments will escape the impact of increase in excise duty as abatement has been provided.
Gold and platinum will also become more expensive as the customs duty in imported standard bar has been hiked to 4 per cent from 2 per cent. The duty on non-standard gold bar has been hiked to 10 per cent from 5 per cent earlier.
Mobile phone parts will become cheaper as excise duty has been cut to 2 per cent from the existing 10 per cent.
In the budget, Mukherjee proposed increasing the customs duty on import of completely built cars and Sport Utility Vehicles to 75 per cent from 60 per cent (3,000cc engine capacity for petrol and 2,500 cc for diesel vehicles).
Moreover, excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc but the length exceeding four metres have been increased to 24 per cent from 22 per cent and a fixed duty of Rs 15,000.
Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27 per cent instead of the earlier 22 per cent and a fixed duty of Rs 15,000.
Imported bicycles will also become more expensive as customs duty has been hiked to 30 per cent from 10 per cent, while the same for bicycle parts has been increased to 20 per cent from 10 per cent.
"Cost of most of the services and goods will increase for the common man with the increase in service tax and excise duties," Ernst & Young Tax Partner Saloni Roy said.
The Finance Minister has taken these steps given the tough fiscal position, Roy said.
With additional information from PTI
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