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Mobiles, ACs cheaper, paan masala to cost more!

Last updated on: February 28, 2005 15:14 IST
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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

  • Branded jewellery will become more expensive with the levy of 2% excise duty;
  • Petrol and diesel to cost Rs 0.50 more per litre;
  • Cigarettes and tobacco products will be costlier. Bidis spared;
  • Paan masala
  • Memberships of clubs and associations and packaging will cost more;
  • Imported cut flowers like orchids;
  • Mosaic tiles;
  • Road tractors;
  • 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;
  • 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
  • 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;
  • Metal inputs like coking coal and calcined alumina;
  • Tea, vanaspati, edible oils may cost less.
  • Imitation jewellery to cost less.
  • Textile imports get cheaper as customs duty on textiles has been reduced 20% to 10%.
  • Edible oil & vanaspathi to become cheaper.
  • Polyster imports get cheaper as customs duty on polyester products down 20% to 15%.
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