Union Budget 2013: SUVs, Smartphones, Cigarettes To Cost More
New Delhi: Sports utility vehicles, imported cars and motorcycles, high-end mobile phones, eating out at air-conditioned restaurants and cigarettes will become costlier with Finance Minister P Chidambaram deciding to impose higher taxes on these items.
But there is good news for ladies as far as jewellery is concerned as they will be allowed to bring more duty free gold items provided they have stayed out of India for more than year. Moreover, branded apparels will become cheaper as there will be zero excise duty on the item. Carpets and other textile floor coverings of coir or jute will also become less expensive as they have been fully exempted from excise duty.
In his Budget proposals for 2013-14, Mr. Chidambaram said excise duty on Sports Utility Vehicles (SUV) will be raised to 30 per cent from 27 per cent. “SUVs occupy greater road and parking space and ought to bear a higher tax... However, the increase will not apply to SUVs registered as taxis,” Mr. Chidambaram said. Targeting the “affluent class in India that consumes imported luxury goods such as high end motor vehicles, motorcycles, yachts and similar vessels”, he said: “I am sure they will not mind paying a little more.”
