Union Budget 2016-17: Here is the list of what becomes expensive and cheaper

By: | Updated: February 29, 2016 4:54 PM

Union Budget 2016: Finance Minister Arun Jaitley announced a host of changes in the tax structure in the Budget for 2016-17 that made cars, cigarettes and air travel expensive.

Arun Jaitley - union budget 2016-17Union Budget 2016: Finance Minister Arun Jaitley on Monday imposed up to 15 per cent excise duty on all tobacco products. (PIB twitter)

Finance Minister Arun Jaitley on Monday announced a host of changes in the tax structure in the Budget for 2016-17 that made cars, cigarettes and air travel expensive, while footwear, solar lamps and routers are slated to be cheaper.

Finance Minister Arun Jaitley on Monday imposed up to 15 per cent excise duty on all tobacco products.

Additional levy of Krishi Kalyan cess on all services, activities including eating out and payment of bills will also become more expensive. We take a look at things that became expensive and chepaer post-budget announcements:

What become expensive:

0.5 per cent Krishi Kalyan Cess on all taxable services with effect from 1st June, 2016 which will increase all services bills like – telephone, restaurant, school fees etc

-Increase in price for luxury cars – The budget has imposed a tax collected at source of 1 % on purchase of luxury cars exceeding value of INR 10 lakhs. Further, an Infrastructure cess has been levied as below –

1 per cent: Petrol/LPG/CNG driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1200cc

2.5 per cent: Diesel driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1500cc

4 per cent: Other higher engine capacity motor vehicles and SUVs and bigger sedans

Tobacco and Tobacco Products
– Branded readymade garments and made up articles of textiles of retail sale price of Rs 1000 or more
– Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored
-Precious metals & Jewellery
– Aluminum foil
– Air Travel
– Plastic bags and sacks
– Ropeway, cable car rides
– Imported imitation jewellery
– Industrial solar water heater
– Legal services
– Lottery tickets
– Traveling by hiring stage carriage
– Hiring of packers & movers
– E-reading devices
– Instruments for VoIP (Voice over Internet Protocol)
– Imported Golf Cars
– Gold bars

What becomes cheaper
– Footwear
– Solar lamp
– Router, broadband modems and set top boxes, Digital video recorder and CCTV cameras
– Hybrid electric vehicles
– Sterilised dialyser
– Low cost houses with less than 60 sq mt carpet area
– Hiring of folk artists for performance
– Refrigerated containers
– Pension plans
– Microwave ovens
– Sanitary pads
– Braille paper

VIDEO: Editor’s take on FM Arun Jaitley’s announcements

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