Stationery items widely used by school children, text books, branded ready-made garments and jewellery, treatment in private hospitals, air travel and lawyer fees will become costlier following the tax proposals in 2011-12 Budget.
The proposals made by Finance Minister Pranab Mukherjee also mean that ready-to-eat food items, such as ketchups, soups, 'mudis' (puffed rice), coffee and tea mixes, flavoured milk, supari will be dearer as they will now attract higher excise duty.
The Budget has, however, made some items, including raw materials for syringe and needles, mobile parts and accessories like hands free headphones, incense sticks, sanitary nakpins and diapers, cheaper by reducing taxes.
According to the budgetary proposals, notebooks and exercise books, which were earlier exempted from excise duty will now attract one per cent duty without CENVAT credit facility. Moreover, a general effective rate of 5 per cent has been prescribed for these items and facilities.
Similarly, fountain pen ink, ball pen ink, geometry boxes, colour boxes and pencil sharpeners will also now attract a similar levy.
Educational text books are also expected to become costlier as paper used in printing them will no longer be exempted from excise duty.
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Vaccines, other than those included in National Immunisation Programme, will also register an increase as they will attract a concessional duty of one per cent without CENVAT credit facility.
Branded readymade garments will also become expensive as they will attract 10 per cent excise duty. Labelled jewellery will burn a deeper hole in the pockets as they will now attract one per cent excise duty.
With the Finance Minister proposing changes in service-tax band, treatment in air-conditioned private hospitals, air travel and lawyer fees will cost more henceforth.
The government has proposed to put all forms of payments -- by individuals, insurance firms and business houses, for treatment in private hospitals with more that 25 beds and air conditioning facility under the service tax net resulting in an effective tax of five per cent.
Likewise, the Budget also proposed to raise service tax on air travel by Rs 50 in the case of domestic airtravel and Rs 250 on international flight by economy class.
Moreover, higher class travel in domestic sector will attract a service tax rate of 10 per cent bringing it on par with journeys by higher classes on international air travel.
Legal cases will also become a costly affair with Mukherjee proposing to cover all legal consultations, except individual to individual, under the service tax net.
Hotel stay will also become more expensive as rooms with a tariff of more than Rs 1,000 a day will attract an effective service tax of 5 per cent. Drinking liquor in air-conditioned restaurants will also be more expensive as it will now come under the service tax net.
Items that will become cheaper include solar lanterns, LED lights, hybrid vehicle kits.