Service tax and excise raised by 2 percent
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- Current News
- Friday, 16 March 2012 12:41
- Published on Friday, 16 March 2012 12:41
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Gujarat Global News Network, New Delhi
In a measure that is bound increase the cost of most of products and services the Union government has decided to increase service tax and excise by 2 percent.
In the case of service tax the government has changed its approach and decided to tax all services except 17 in negative list a the tax and exemption list.
The service tax would increase from 10 percent to 12 percent. Due to this all services right from food in restaurant from bills of basic services like electricity and telephone will increase.
Defending change in the strategy of service tax Finance Minister said that the tax is in operation for last 18 years. However it is not playing significant role. For this he said its recovery and scope has to be increased.
Excise duty has been hiked from 10 to 12 percent. In the case of large cars the duty has been increased from 22 to 24 percent. These cars would attract duty upto 27 percent.
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