On Friday, 16th of March 2012, Union Minister Pranab Mukherjee present his 7th union budget 2012 and as Every Indian wants to know whats new in the union budget and how they will benefited by the union budget 2012, below is the list of items which will be costly and things which are cheaper, starting with this new budget.
Also Finance Minister, Pranab Mukherjee, unveiled the Budget against the backdrop of a slowing economy, predicting a 7.6 % growth rate in 2012-13.
Things which become costlier:
Here is the list of the things which become expensive
- Gold jewellery
- Luxury cars
- Air travel
- Telephone bills
- Handrolled beedis
- Platinum jewellery
- Diamond jewellery
- Branded retail garments
List of things which become cheaper:
- LCDs and LED
- Cinemas and films
- Imported bicycles
- Housing society charges
- Mobile phones
- School education
- Iron ore equipment
- Medicines for treating cancer and HIV Processed food
- Iodised salt
- Match boxes
- Soya products
- Solar power lamps
- LED bulbs
- Natural gas
- Uranium for generation of electricity
Services and duties (expensive):
With service tax being hiked to 12 per cent from the existing 10 per cent except in a few items, average person will have to pay more while traveling by air or hiring a law firm. Honorable Mr. Mukherjee proposed to increase excise duty on all non-petroleum products, except a few, to 12 per cent from the existing 10 per cent
About Income Tax exemption limit:
Pranab Mukherjee raised the exemption limit for income tax by just Rs 20,000 from Rs 1,80000 to Rs 2 lakh. The budget will definitely disappointed the large numbers of tax payer in the country.
New tax slabs:
- Up to Rs 2 lakh: No tax
- From Rs 2 lakh to 5 lakh: 10%
- From Rs 5 lakh to 10 lakh: 20%
- Above Rs 10 lakh: 30%
After going through the Union Budget 2012-13 presented by Pranab Mukherjee, we can say that almost all the manufactured items used in everyday life will become costlier, while luxury cars, gold, eating out at restaurants or hotel accommodation will become even more expensive after a steep hike in tax rates proposed in Budget.
We will update more as we collect more information on this.