Food and Fuel prices may come down because they are exempted from central excise duty. Food prices have come down a little in the recent times, but definitely fuel has seen historical rises. May be the cut down in central excise duty will make the regular fuel price hike a bit slower than being turbocharged. The price hike will try to grow with inflation and not over beat it in the short run. Not much expectations from the government in this sector because the government always fails to stabilize these prices.
Farm equipments to cost less as customs duty is reduced from 5 percent to 4.5 percent. The government has subsidy schemes but it reaches only the big land lords and small time farmers are having a hard time staying alive in India. It is a day-to-day challenge for them to survive. Surely, the Zamindars will add more tractors and equipments and reduce the man labor – and not pay back the agricultural loans..
Packed food items and snacks like flavored milk, chips, supari and ready to eat (microwave and eat stuff) will attract more excise duty. This might result in less obese people in India – lets see.
Branded dresses will cost more as they attract excise duty of 10 percent. Already, people are paying more for the brand value and thanks to government for making things much better (sarcasm). Non-branded guys – make your collections bigger – we love you.
Raw silks will definitely be cheaper as excise duty is slashed from 30 percent to 5 percent. I think this would not apply to designer bridal collections – see above (brand). More weddings? Yes definitely, we need to contribute to the “GROWTH” of India – I meant population.
Quality treatment to cost more as the government has proposed service tax for treatment in private hospitals with more than 25 beds and air conditioning facility under the service tax net resulting in 5 percent tax. Health check-ups will also attract service tax. Doctors and Government have joined hands in stripping the patients.
Prices of Vaccines other than those which fall under National Immunisation Programme, will increase as they will attract a concessional duty of one per cent. Vaccine prices are already rocket high – may be will chip in a little more with the grace of government.
Textbooks and stationery will cost more because of new layer of tax without CENVAT credit facility. The government has been very kind enough to give importance to education (sarcasm).
Steel prices to come down which would reflect drop in prices of items using steel. Steel prices are greatly influenced by international market and demand – so not much to come down. My digestive system is not programmed to digest steel – don’t know about my readers.
Legal proceedings will also become costly (more costlier) affair – thanks to Mukherjee (sarcasm) for proposing service tax to cover all legal consultations, except individual to individual. Lawyers can milk their clients better now.
Mobile phones to be costlier because of being listed in 130 items which would attract 1% hike in Central Excise Duty. It would not have an effect because of other factors which constantly brings prices of mobiles down like technology becoming cheap.
Cars could cost less or the same as per budget because of no change in excise duty rates, but a rise in car prices is being expected because of various factors. I feel there is no chance of car prices going down and chances are there for a small hike in prices.
Hotel accommodation will definitely be costlier with hotel stays attracting service tax of 5 percent (if tariff >1500).
Jewellery is exempted from central excise duty. It might stabilize the hike in prices, but not bring the prices down because of continued demand. The budget states labeled jewellery (I do not know what they mean – may be BIS marked or 916 KDM or branded ones like Tanishq) now attract 1% excise duty. This hike in excise will definitely not make women happy.
Liquor is again a big victim to budget. Air conditioned bars and permit rooms attract more service tax. I think more people will move towards the famous TASMAC playing the role of landmarks in every cities in Tamilnadu.
Hybrid cars would cost less because of reduced duty. Not applicable for CBU (Completely Build Unit) fuel guzzlers. Hybrid cars are just entering the Indian market, so it would not reflect much among car enthusiasts.
Air travel will become much costlier due to raised service tax. Business class tickets would set pockets on fire.
Raw silks will definitely be cheaper as excise duty is slashed from 30 percent to 5 percent.
“Money is like a sixth sense - and you can't make use of the other five without it” - Somerset Maugham
