Increase in service taxes
The already burdened common man will be further put to hardships due to the increase in service taxes. Common man would have to further bear the load of inflation from June onwards as they would have to cough up more on food, travel, mobile bills and other utility services due to rise in service tax.
With the issuance of notification over service tax by the Central Government the service tax has been increased from the existing 12.36 per cent to 14 per cent, that means that the people would have to pay more tax. Finance minister Arun Jaitleya��s proposal to boost service tax from the present 12.36% to 14% seems to burn a hole in the common mana��s pocket. It is considered that the medium class would be hit most by this sharp increase in the service tax.
A very disturbed Azeez pasha, ex-mp and state secretary Telangana, CPI says everything from railway fare to air travel, hotels, holiday, insurance policy, electricity, cheque, draft, cement, branded garments, gold, tents for marriages and other celebrations would now cost more. Already the prices of vegetables, fruits and other household will increase many folds leaving the lower and middle class families bewildered and shocked. They are finding it hard to make both ends meet
Says Mr.Rudrabir, lecturer in economics ,The middle class requires a lot of financial planning as well as retirement planning that usually everyone forgets. Under all these circumstances, the survival of common man is becoming tougher and tougher. With so much to lose, nobody is expected to gain, and a much serious thought is expected by the govt. to meet the current obligations…
All service-related industries have expressed disappointment over the rise. a�?The hike in service tax will immediately increase air fares and hotel tariffs. The first and business class fares will shoot up. This will affect with tourism industry,a�? said Subhash Goyal, president, Indian Association of Tour Operators.
A middle class employee working a superintendent in the education department, Telangana says, impose tax on those who cannot raise their voices. Service tax being an indirect tax, the end user has to bear the burden on his feeble shoulders. Imposing more taxes on us is a reflection of mismanagement of economic affairs at the top.