Union Budget 2014: Smoking to be costly; colour TV, footwear set to be cheaper

Jul 10 2014, 16:56 IST
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 Jaitley proposed to increase the specific excise duty on cigarettes in the range of 11 per cent to 72 per cent. Jaitley proposed to increase the specific excise duty on cigarettes in the range of 11 per cent to 72 per cent.
SummarySmokers will have to shell out more for the puff as Finance Minister Arun Jaitley today proposed a steep hike...

LCD and LED TV panels of below 19 inches from 10 percent to nil.

"Further, to encourage manufacture of LCD and LED TV panels, I propose to exempt from basic customs duty specified inputs used in their manufacture."

Cost of HIV/AIDS medicines and diagnostic kits for AIDS, TB and malaria will go down with full exemption from customs duty.

To provide relief to the footwear industry, most of which are in SME sector, Jaitley proposed to reduce excise duty from 12 per cent to 6 per cent on footwear of retail price exceeding Rs 500 per pair but not exceeding Rs 1,000 a pair.

"Footwear of retail price up to Rs 500 per pair will continue to remain exempted," he said.

Personal computers, laptops and tablets are also set to be cheaper as the special additional duty on all inputs and components used to manufacture these items has been exempted.

Similarly, e-book readers will become cheaper it will no longer attract basic customs duty as against 7.5 per cent earlier. Excise duty on metal core and PCB driver used to manufacture of LED lights, lamps and fixtures has been reduced from 10-12 per cent to 6 per cent, thus making it more affordable.

Water purifiers using reverse osmosis (RO) technology will also become cheaper as excise duty on RO membrane element has been reduced to 6 per cent from 10-12 per cent

On the other hand, with the list of negative list of service tax being reviewed, online and mobile advertising will become expensive as service tax leviable currently, on sale of space or time for advertisements in broadcast media has been widened.

"Sale of space for advertisements in print media however would remain excluded from service tax," Jaitley said.

Similarly, tax is being proposed on the service provided by radio-taxis to place them on par with rent-a-cab service, thus making it costlier.

Central excise duty on branded petrol has been reduced to Rs 2.35 per litre from Rs 7.5 earlier while concessional excise duty of 2 per cent without CENVAT and 6 per cent with CENVAT credit has been extended to sports gloves.

Half-cut or broken diamonds will be more expensive with levy of basic customs duty of 2.5 compared with zero duty at present. Similarly, basic customs duty on cut and polished diamonds and coloured gemstones has been increased to 2.5 per cent as against 2 per cent earlier.

Soaps will become cheaper as its

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