Budget 2013: What gets costlier, what gets cheaper on P. Chidambaram's orders
In a blow to mobile handset makers, excise duty on instruments priced above Rs 2,000 has been raised to six per cent but the concessional excise duty of one per cent and has been kept unchanged in the case of low priced phones.
Smokers will also have to shell out more for their puffs with Chidambaram training his eyes on them for more tax revenues.
"What does a Finance Minister turn to when he requires resources? The answer is cigarettes. I propose to increase the specific excise duty on cigarettes by about 18 per cent. Similar increases are proposed on cigars, cheroots and cigarillos," he said while delivering the Budget speech.
Eating out at air conditioned restaurants will also become more expensive with the Finance Minister bringing it under the purview of service tax. At present, service tax of 12 per cent does not apply to A/C restaurants that do not serve liquor.
"The distinction is artificial, and I propose to levy service tax on all air conditioned restaurants," he said.
Homes and flats with a carpet area of 2,000 sq ft or more or of a value of Rs 1 crore will also become more expensive as the rate of abatement for this class of buildings has been reduced from 75 per cent to 70 per cent.
Silk clothes made using imported raw materials will become expensive as customs duty on raw silk of all grades has been increased to 15 per
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