Almost all consumer goods are expected to become costlier as Delhi Assembly on Tuesday passed the Annual Budget for the year 2015-16 proposing to impose pollution fee on all the commercial vehicles entering the city. Besides, watching movies, cable TV and DTH services are also going to be an expensive affair as the Government hikes entertainment tax from 20 per cent to 40 per cent.
Introducing the Budget on Thursday, Finance Minister Manish Sisodia had proposed to levy a fee on entry of all commercial vehicles ranging from Rs 100 to Rs1,500. Though the Government is planning to use the fund generated from it to augment environment-friendly public transport system, prices of vegetables, milk and other essential products which are imported from the other States are expected to go up. Since Delhi is neither an agricultural State nor a manufacturing State, almost all products consumed in city come from other States.
Replying to discussions on the Budget, Sisodia said that the Budget has changed the definition of development.
Hailing the Budget, Chief Minister Arvind Kejriwal said, “It is not a Government of the BJP, but of the Aam Aadmi Party. In our Government, work started even before presenting Budget. We have started work on 90 per cent of projects. We will teach politics and governance to others.”
A hike in entertainment tax from 20 per cent to 40 per cent is going to make watching movies in theatres more expensive. An entertainment tax of Rs 40 on Cable TV and DTH services is going to hit the consumers. A five per cent hike in luxury tax is going to make visiting gyms, spas and staying in hotels expensive as well.
Responding on increase in tax on DTH/Cable, Sisodia said, “Charges on DTH was not raised in the last 15 years. It was Rs 20 for last 15 years. That is why we raised it.”
Apart from that, registration of private vehicles in the name of companies and partnership is also going to be expensive as the Government has increased the registration tax on the same by 25 per cent.
However, cost of furniture and products made from wax may go down as the Government has reduced VAT on wood and timber from 12.5 per cent to 5 per cent, and has also unified VAT on different types of wax to 5 per cent. Earlier, different types of wax incurred VAT at 5 per cent, 12.5 per cent and 20 per cent.
Kitchen utensils are also expected to become cheaper as the tax on the utensils of all types, except those made of precious metals, is reduced to 5 per cent. Earlier, cutlery items were taxable at 12.5 per cent.
However, the effect of entry fee on vehicles entering Delhi is expected to hit all goods including those on which the tax rates are lowered, which may diminish the effect of tax rate reduction on the same.