Union Budget 2015-16: What has become cheaper and what will cost you more?
Updated on March 2, 20152 mins read
Let’s have a look at the some important announcements made by the Finance Minister (FM) in the Union Budget 2015-16 and how it will a consumer like you and your monthly Monthly Expenditure.
What’s Become Cheaper:
Household items like microwave ovens and refrigerators can become cheaper owing to cuts in duty in their key components. Solar Water Heaters to be cheaper owing to cut in excise Excise Duty.
Excise duty on locally made mobile phones, tablets, LED/LCD panels, LED lights and LED Lamps have been cut and hence will be cheaper.
Leather footwear set to become cheaper: Excise duty on leather footwear with a Retail Sale Price of more than Rs. 1000 per pair is set to halve from 12% to 6%.
Packaged fruits and vegetables to become cheaper since the services involved e.g. retail packing and cold storage have been exempted from service tax.
Government will not levy additional custom duty on IT goods and services. This should mean computer equipments and software may cost you lesser.
Ambulance Services shall be less expensive since they are exempted from Service Tax.
If you plan a visit a museum, zoo, national park, wild life sanctuary or a tiger reserves, you could spend lesser since these activities are now exempt from the service tax.
If you do most of your shopping using cards, you can expect to be rewarded soon. The FM wants to encourage you to go cashless. The government will incentivize spending through debit/credit cards. RuPayis a domestic debit card scheme under the National Payments Corporation of India (NPCI). This could be the best way to solve the problem of black money as well. At the same time you may want to keep a careful look-out on where you swipe that debit.
What’s become more expensive:
Here are some important announcements in the Union Budget 2015-16 that will impact your wallet adversely:
With Service Tax increased from 12.36% to 14%, the following among other services will get more expensive:
a) Eating Out at restaurants
b) Air travel
c) Insurance Premiums
d) Overall costs of home buyers and those availing services from the real estate sector
Cigarettes and other tobacco products like cigars, cheroots and cigarillo, pan masala and gutkha to cost more due to changes in Excise Duty.
Consumption of aerated, flavoured drinks and packaged water will be costly since excise duty has increased to 18 per cent from 12 per cent earlier.
Visits to amusement and theme parks as well as music concerts tickets will be higher as they are brought under the service tax net.
Hours after the Budget Announcement, the fuel prices were hiked. Petrol prices went up by Rs 3.18 per litre and Diesel by Rs 3.09 per litre effective from midnight Saturday,28th February 2015.
We hope the above information helps you to plan your expenditure carefully and increase your monthly savings.
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