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The Cost Factor

The Cost Factor

What’s Expensive

Air travel: 10-20% increase in air fares due to 10% service tax on all classes of domestic and international economy class tickets and 10% excise duty on jet fuel.

• Automobiles: 2% excise duty hikes prices of cars, bikes and commercial vehicles.

• Consumer durables: Air conditioners, refrigerators and washing machines will be costlier by up to 4% following a 2% increase in central excise duty.

• Petrol and petroleum products: Increase in prices by Rs2.67 and Rs2.58 a litre respectively for petrol and diesel due to restoration of basic duty of 5-10% and enhancement of central excise duty by Re1 per litre.

• Real estate: A 10.3% service tax on first time buyers of residential apartments will increase residential real estate prices.

What’s cheaper

• Mobile phones and accessories: If manufactured in India, they will be cheaper by 10-15%.

• Medical equipment: Uniform customs duty of 5% plus 4% countervailing duty against current general maximum rate of 16.78% to reduce cost of treatment.

• Entertainment: Marginal price drop in imported content including films, gaming and music CDs and DVDs.

• Microwave ovens: Reduction in basic customs duty from 10% to 5% of its key component, magnetrons, could make them cheaper.

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