Certain modifications are carried out over various consumer goods in according to the newly amended budget plan for 2017. The Finance Minister Arun Jaitley refrained from proceeding with too many changes.
A gradual increase in tobacco prices is observed since a long time. This year might be an another ‘hole in the pocket‘ year for the Smokers and tobacco consumers the finance minister continued with the crackdown on cigarettes and tobacco products by increasing taxes in the budget for 2017-18.
Sources claim that the current budget plan is quite strictly based on encouraging the affordable and sustainable energy factors, taking these factors into account the excise duties on solar tempered glass, fuel cell-based power generating systems and the wind operated energy generators.
Sources claim that despite the instant growth in some products, the considerable drop in prices is observed in other goods.
Items that potentially experience the drop in prices are LED lamps, solar panels, printed circuit boards for mobiles, micro ATMs, fingerprint machines and Iris scanners.
Meanwhile, silver coins, cigarettes and tobacco, bidis, pan masala, goods imported through parcels, water filter membranes and cashew nuts will become dearer.
Going to the details, here is the list of items that experience fluctuations in prices,
Items that will turn expensive in 2017:
- With the increase in excise duty on unmanufactured tobacco from 4.2 percent to 8.3. This would increase the prices of beedi and cigarettes.
- The excise duty on non-filter cigarettes has been raised from Rs 215 per thousand to Rs 311 per thousand.
- The excise duty on pan masala has been increased from 6 per cent to 9 per cent.
- Cheroots, cigars, might experience 12.5 percent more, due to the hike in excise duty.
- 5 percent of customs duty would be imposed on LED lights.
- Cell phones are expected to turn costlier as the customs duty on printed circuit board has been hiked by 2 per cent.
- the excise duty on aluminium ores and other concentrates raised from zero to 30 percent.
What turns cheaper:
- Railway tickets will turn considerably cheaper, with service tax on e-tickets waived off.
- Customs duty on LNG reduced from 5 per cent to 2.5 per cent.
- Customs duty waived off on solar powered glass panels.
While addressing about the budget in the parliament, Arun Jaitley said:
“Centre, through the Central Board of Excise and Customs, shall continue to strive to achieve the goal of implementation of GST (Goods and Services Tax) as per schedule without compromising the spirit of co-operative federalism”.
“Implementation of GST is likely to bring more taxes both to central and state governments because of the widening of the tax net. I have preferred not to make many changes in the current regime of Excise and Service Tax because the same are to be replaced by GST soon,” he added.
Summarising the whole plan, Jaitley said the exchequer won’t get any significant loss or gain regarding his proposals on excise and customs duties.