Pay more for ATM, but get cheaper cars
Go ahead with buying that car or an outing for ice cream and pay less, but if you use your credit or debit card, it will cost more.india Updated: Feb 28, 2006 15:43 IST
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.
First Published: Feb 28, 2006 15:35 IST