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Budget 2016: Cars, cigarettes, eating out, travel get costlier

Buying a car just got costlier as Finance Minister Arun Jaitley has announced a 1% additional tax on cars costing above Rs 10 lakh. Small cars too have not been spared as a 1% infra cess has been levied on them.

Updated on: Feb 29, 2016, 18:02:19 IST
Hindustan Times | By , New Delhi
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Cars, cigarettes, branded garments, air travel will become more expensive, while footwear, solar lamps and routers are slated to be cheaper following a host of changes in the tax structure in the Budget for 2016-17.

Buying a car just got costlier as Finance Minister Arun Jaitley has announced a 1% additional tax on cars costing above Rs 10 lakh
Buying a car just got costlier as Finance Minister Arun Jaitley has announced a 1% additional tax on cars costing above Rs 10 lakh

As a result of additional levy of Krishi Kalyan and infrastructure cess on all services, activities including eating out and payment of bills will also become more expensive.

Here is a list of things that have become more expensive

Cars Buying a car just got costlier as Finance Minister Arun Jaitley has announced a 1% additional tax on cars costing above Rs 10 lakh. Small cars too have not been spared as a 1% infra cess has been levied on them.

A 2.5% infra cess will be imposed on diesel cars.

Jaitley also said that a 4% additional levy will be imposed on high-capacity passenger vehicles and SUVs.

Cigarettes: Cigarette prices will also go up as the finance minister proposed to hike excise duty on tobacco (except bidis) by 10-15 per cent .

Jewellery: A 1 percent excise duty has been levied on gold and diamond jewellery.

Aerated drinks (Coke, Pepsi) and Mineral water will get costlier by 3%

Bills: All services like bill payments, eating out, air travel

Clothes: Ready made garments and branded apparel of more than Rs 1,000

Goods and services above Rs 2 lakh in cash

Aluminum foil

Air Travel

Ropeway, cable car rides

Industrial solar water heater

Legal services

Lottery tickets

Traveling by hiring stage carriage

Hiring of packers & movers

E-reading devices

Instruments for VoIP (Voice over Internet Protocol)

Imported Golf Cars

Gold bars

Following is a list items that will turn cheaper:

Footwear

Solar lamp

Router, broadband modems and set top boxes, Digital video

recorder and CCTV cameras

Hybrid electric vehicles

Sterilised dialyser

Low cost houses with less than 60 sq mt carpet area

Hiring of folk artists for performance

Refrigerated containers

Pension plans

Microwave ovens

Sanitary pads

Braille paper

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