Service tax plays an important role in living standard and is directly or indirectly linked with the life of a person.
While, this time a rise of 2 percent in the service tax will affect the Household budgets for 2012-13. As per the updates this service tax will came into effect from Sunday i.e. 1st April, 2012.
This increase will affect:
1) Mobile bills
2) Food
3) Shopping
4) Traveling
5) Coaching classes
6) Advertisements
7) Health clubs
8) Dry cleaning
9) Beauty parlour
10)Life insurance
As per the reports, Pranab Mukherjee (Finance Minister) had proposed to hike service tax to 12 percent from the earlier rate of 10 percent.
This increase in service tax could generate revenue of around Rs.18,600 Crore.
Along with the Hike in other indirect taxes like customs, excise and import duties will also affect the household budgets hard.
Tax Increase:
Excise duty: 10 percent to 12 percent
Import duty (Gold): increased to 4 percent.
——Agencies