You will have to pay more for cigarettes, pan masala, tobacco products and branded jewellery, but housewives will be a happier lot with the relief offered on edible oil, vanaspati, match boxes, tea and some other kitchen items in the Union Budget for 2005-06.
Virtually playing to the gallery, Finance Minister P Chidambaram sought to please the lower and middle-class women folks by reducing the duty on imitation jewellery but more than made up for the concession by hiking the tax on high-value branded jewellery.
Let's take a quick look at what could become more expensive and what will cost lesser now.
What will cost more
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Branded jewellery will become more expensive with the levy of 2% excise duty;
- Petrol and diesel to cost Rs 0.50 more per litre;
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Cigarettes and tobacco products will be costlier. Bidis spared;
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Memberships of clubs and associations and packaging will cost more;
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Imported cut flowers like orchids;
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Mosaic tiles;
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Road tractors;
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Withdrawing of over Rs 10,000 in cash on a single day from a bank. You will need to pay Rs 10 as tax on this;
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With the proposal to levy a 4% countervailing duty on information technology products, IT hardware will become more expensive. Software, however, has been exempted from the proposed duty;
- Construction items like steel; and
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Cement because of the proposal to hike excise duty.
What is cheaper
- Air-conditioners, cellphones;
- Imported fabrics and garments;
- Cakes and pastries will become cheaper;
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Metal inputs like coking coal and calcined alumina;
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Tea, vanaspati, edible oils may cost less.
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Imitation jewellery to cost less.
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Textile imports get cheaper as customs duty on textiles has been reduced 20% to 10%.
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Edible oil & vanaspathi to become cheaper.
- Polyster imports get cheaper as customs duty on polyester products down 20% to 15%.
