Pay more for ATM, but get cheaper cars | india | Hindustan Times
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Pay more for ATM, but get cheaper cars

Aiming to please the common man, Finance Minister P Chidambaram announced a slew of proposals that triggered a race among car majors.

india Updated: Feb 28, 2006 16:08 IST
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Go ahead with buying that car or an outing for ice cream and pasta and pay less, but if you use your credit or debit card, it will cost more, going by the Budget proposals announced on Monday. And your smoke will be also be dearer.

Aiming to please the common man, Finance Minister P Chidambaram announced a slew of proposals that triggered a race among car majors -- Maruti, Hyundai and Tata -- to reach their customers first with a reduced price of upto Rs 23,000.

An analysis of the budget proposal makes it clear that soft drinks to ice creams for the generation next, LPG stoves for house wives and footwear and fluorescent lamps for commoners and DVD drives, flash drives, printing and writing papers for professionals, will cost less as excise duties on most of these products have been brought down.

But Cigarettes continue to be a luxury and Finance Minister did not miss a chance to make it dearer for smokers.

However, people aspiring to procure a computer will have to may more with Budget proposing excise duty on both computer and packaged software.

Housewives may be in for some disappointment with household articles including glassware, tableware, kitchenware, soaps, biscuits, all expected to become costlier.

Likewise goggles, umbrellas, henna powder, ceramic bricks and tiles, marble slabs, roofing tiles will become costlier with Finance Minister increasing excise duty or bringing them under the excise net.

People using Automated Teller Machines, credit cards, debit or charge cards will now have to shell out extra with Finance Minister bringing these services under tax net.

Share transfers, public relations services, internet telephony as also international air travel except economy class and travel by cruise ships are also set to become costlier with these services coming under tax net.

Reflecting the human face of the UPA Government, Chidambaram has proposed to bring down customs duty on 10 anti-HIV and 14 anti-cancer drugs to make them affordable even as the peak rate has been brought down from 15 to 12.5 per cent.

With reduction in customs duty, plastics including PVC, alloy steel, aluminium, tin are expected to become cheaper for consuming industries.

In a move aimed at addressing the concerns of the industry, import duty on honey and vanaspati are proposed to be raised. The increase in duty, howver may impact the prices of the imported commodity in the local markets.

Whatwill cost less

Small cars
Aerated drinks
Footwear
DVD Drives, Flash Drives and Combo Drives
Condensed milk
Ice cream
Preparations of meat, fish and poultry
Pectins, pasta and yeast
Ready-to-eat packaged foods and instant food mixes, like dosa and idli mixes
10 anti-AIDS drugs and 14 anti-Cancer drugs
Writing paper
Fluorescent lamps
LPG stoves
Vanaspati
Bulk plastics like PVC, LDPE and PP
Packaging machines

What will be dearer

Cigarettes
IT products
Packaged software sold over the counter
Glassware
Computers
Set top boxes
ATM operations, maintenance and management
Registrars, share transfer agents and bankers to an issue
Sale of space or time, other than in the print media, for advertisements
Sponsorship of events, other than sports events, by companies
International air travel excluding economy class passengers
Container services on rail, excluding the railway freight charges
Business support services
Auctioneering
Recovery agents
Ship management services
Travel on cruise ships
Public relations management services