Wednesday, June 1, 2016

Living in India is getting more expensive

 

Well, prices of things are always going up, but now the Indian citizen is getting crushed under a new set of taxes. After introducing the 0.5% Swachh Bharat Cess in November, the Union Finance Minister announced in this year’s Budget that the government would levy a Krishi Kalyan Cess to finance activities related to agriculture and build a fund for the welfare of the farmers. Indirect taxes and charges such as these are an important part of the government’s income from taxation. Of the Rs14.4 lakh crore ($213 billion) of taxes collected by the Indian government in the last financial year, 44.4% came from indirect taxes.

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Meanwhile, prices of petrol and diesel were hiked on June 1. Petrol will become costly by Rs2.58 per litre and diesel by Rs2.26 a litre. This means transport costs will rise, affecting the prices of vegetables, fruits, milk and other food products, among others. To add to household woes, the cost of an LPG cylinder—used for cooking across the country—was also increased by Rs21.

Travelling in airconditioned buses will be costlier from today with the Bangalore Metropolitan Transport Corporation (BMTC) increasing its fare by 6%, thanks to union finance minister Arun Jaitley, who has imposed service tax on state-carriage AC buses. Not just tickets, daily and monthly passes will also cost more. Monthly passes of AC buses which operate within the city are likely to cost `135 more, and passes of AC buses to and from Kempegowda International Airport will cost `201.

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What a fantastic time to be living in India. And the reality of all this is that after all these taxes and charges, nothing  is going to change in the country.

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