New Delhi: The new tax policy and charges announced in Union Budget and Railway Budget 2013-14 have become applicable from Monday. Sparing the common man and taxing the super-rich - both individuals and corporate houses, Union Finance Minister P Chidambaram has increased social spending but stayed away from blatant pre-poll sops in his Budget. Belying fears of profligate spending to win votes, the Finance Minister kept a tight grip on his fiscal deficit and current account deficit targets without raising income-taxes or excise taxes across the board.
Train ticket prices and freight tariff will see an increase from Monday. Freight tariff has been hiked by 5.7 per cent from April 1. India's financial capital Mumbai is going to be one of the worst hit because after auto and taxi fare hike, travelling in BEST buses will also cost more. BEST has increased the fares by Rs 2 while the tickets of air conditioned buses will cost Rs 5 more. Even the charges of monthly bus passes have been increased.
BEST chairman Ashok Patil said that the decision to hike fares has been taken to minimise losses as it has become uneconomical to run the buses after hike in petrol and diesel prices.
Those using luxury cars and bikes will also have to shell out more as the government has imposed customs duty of 100 per cent. In addition, three per cent excise duty on SUVs is also set to increase the price.
Eating out in air conditioned restaurants will attract 12 per cent service tax from April 1 and cost of mobile phones costing more than Rs 2000 will also increase. Set-top boxes will attract a custom duty of 10 per cent making TV viewing also costlier.
Car and bike insurance has also become expensive as premiums have seen an increase of 20-30 per cent. For example if earlier you were paying Rs 350 for a 75 cc bike, now one needs to pay Rs 472. Car insurance premiums are likely to be doubled.
Furthermore, buying and selling of property is also going to become expensive. The government will impose one per cent TDS on the buying and selling of property costing more than Rs 50 lakh.