How It Impacts Your Pocket

Changes announced in Budget 2013 in tax rates on specific items will impact prices of goods that you use everyday
     Print Edition: April 2013

Changes in tax rates on specific items will impact prices of goods that you use everyday.

MARKED UP

>> Set-Top Boxes: Though a one-time cost, set-top boxes are going to cost more this financial year. The excise duty on them has been doubled from 5 per cent to 10 per cent.

>> Silk Clothes and Items: The customs duty on raw silk has been increased from 5 per cent to 15 per cent. So, silk sarees and scarfs will now be dearer.

>> SUVs and Imported Cars:
Excise duty on Sports Utility Vehicles (other than taxis) has been increased from 27 per cent to 30 per cent. Also, basic customs duty on high-end imported cars and other motor vehicles costing more than $40,000 (approximately Rs 22 lakh) and with engine capacity exceeding 3000cc for petrol engines and 2500cc for diesel engines has been increased from 75 per cent to 100 per cent.

>> High-end Bikes: Not just cars, bikes will cost more as well. The customs duty on motorcycles with engine capacity of 800cc or more has been increased from 60 per cent to 75 per cent. The customs duty on -high-end motor vehicles, yachts and similar vessels have also been increased.

>> Cigarettes:
Quit smoking to save your health as well as your wallet. Excise duty on all cigarettes has been increased by about 18 per cent, except cigarettes of length not exceeding 65mm. There is a similar increase for cigars, cheroots and cigarillos as well.

>> Silver: Silver can cost more. The finance minister has proposed a 4 per cent excise duty on silver manufactured from smelting zinc or lead.

>> Smartphones: The Budget has proposed a 6 per cent excise duty on mobile phones priced at more than Rs 2,000.

>> Eating Out: The Budget proposes to levy service tax on all air-conditioned restaurants, even those without a bar licence.

>> Luxury Homes: The service tax abatement (a tax deduction) has been reduced from 75 per cent to 70 per cent for homes and flats above 2,000 sq ft or costing more than Rs 1 crore.

>> Marble: Excise duty on marble tiles and slabs has been raised from Rs 30 per square metre to Rs 60 per sq metre.



MARKED DOWN

>> Leather Items: Bags, belts and boots can cost less. The customs duty on specified machinery for manufacture of leather and leather goods, including footwear, has been reduced from 7.5 to 5 per cent.

>> Precious and Semi-Precious Stones: Customs duty on preform precious and semiprecious stones has been reduced from 10 per cent to 2 per cent.

>> Readymade garment: Zero excise duty policy on branded readymade garments has been restored and cotton fibre has been exempted from excise duty.

>> Carpets and Floor Covers:  Handmade carpets and textile floor coverings of coir and jute totally exempted from excise duty.


OTHER HIGHLIGHTS

>> Duty on Gold: Customs duty-free gold limit has been increased to Rs 50,000 in case of male passengers and Rs 1,00,000 in case of female passengers. In addition, duty-free allowance for crew members of ships and aircraft has been increased from Rs 600 to Rs 1,500.

>> Green Vehicles: Lithium ion automotive batteries that are used in hybrid and electric vehicles have been fully exempted from basic customs duty. Also, exemption of additional customs duties for specified parts of electric and hybrid vehicles has been extended by two more years.

>> Insurance: The tax deduction eligibility for premiums paid towards buying life insurance for persons with disability and certain ailments has been raised from 10 per cent of sum assured to 15 per cent.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close