EFFECT OF THE PROPOSED UNION BUDGET 2012 - 13 .

Pranab Mukherjee present his 7th union budget 2012 and as Every Indian wants to know whats new in the union budget and how they will benefited by the union budget 2012, below is the list of items which will be costly and things which are cheaper, starting with this new budget.

Also Finance Minister, Pranab Mukherjee, unveiled the Budget against the backdrop of a slowing economy, predicting a 7.6 %  growth rate in 2012-13.A large variety of day-to-day usage items and services will burn a hole in the common man's pocket with Finance Minister Pranab Mukherjee proposing to raise excise duty to 12 per cent from 10 per cent and a similar hike in service tax rate.

Following is a list of what will be costlier and which ones will be cheaper following the Budget 2012-13.

Costlier:

* Two-wheelers, cars, commercial vehicles,

* Refrigerators, air-conditioners, washing machines, watches

* Soaps, cosmetics, homecare items,

* Cigarettes and bidis,

* Packaged food items

* Pan masala and chewing tobacco,

* Unbranded precious metal jewellery,

* Imported luxury vehicles,

* Imported bicycles and bicycle parts,

* Imported digital still cameras,

* Imported gold bars and coins of certain categories, platinum

* Imported cut and polished coloured gem stones,

* Air travel, eating out at restaurants and hotel stays

* Branded retail garments.

Not all is gloomy as the Budget has also made some items and activities cheaper.

Cheaper:

* Mobile phone parts,

* Branded silver jewellery,

* Branded garments,

* Imported LCD and LED TV panels of over 20 inch,

* Matches,

* Footwear below Rs 500,

* Adult diapers,

* Soya protein food products,

* Probiotics,

* Writing instruments,

* Imported medical equipment.

* Cinemas and Films.

* LPG.

* School education.

Services and duties (expensive):

With service tax being hiked to 12 per cent from the existing 10 per cent except in a few items, average person will have to pay more while traveling by air or hiring a law firm. Honorable Mr. Mukherjee proposed to increase excise duty on all non-petroleum products, except a few, to 12 per cent from the existing 10 per cent

About Income Tax exemption limit:

Pranab Mukherjee raised the exemption limit for income tax by just Rs 20,000 from Rs 1,80000 to Rs 2 lakh. The budget will definitely disappointed the large numbers of tax payer in the country.

New tax slabs:

• Up to Rs 2 lakh: No tax
• From Rs 2 lakh to 5 lakh: 10%
• From Rs 5 lakh to 10 lakh: 20%
• Above Rs 10 lakh: 30%

After going through the Union Budget 2012-13 presented by Pranab Mukherjee, we can say that almost all the manufactured items used in everyday life will become costlier, while luxury cars, gold, eating out at restaurants or hotel accommodation will become even more expensive after a steep hike in tax rates proposed in Budget.