Budget 2013: Super rich tax, other proposals to swell exchequer by Rs 18K cr

Budget 2013: Super rich tax, other proposals to swell exchequer by Rs 18K cr New Delhi: New tax proposals including 10 percent surcharge on super rich and higher duties on mobiles, cigarettes and SUVs will help government garner Rs 18,000 crore in 2013-14.

Finance Minister P Chidambaram in his budget speech Thursday said, "My tax proposals on the direct taxes side are estimated to yield Rs 13,300 crore and on the indirect taxes side Rs 4,700 crore."

As part of budget proposals for direct taxes, the Finance Minister imposed a surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs 1crore.

Besides, surcharge has been doubled to 10 percent on domestic companies whose taxable income exceeds Rs 10 crore. For foreign companies, surcharge has been raised from 2 percent to 5 percent, if the taxable income exceeds Rs 10 crore.

These additional surcharges would be in force for only one year. However, education cess would continue at 3 percent.

At the same time, the Finance Minister has provided tax relief of Rs 2,000 for the Tax Payers in the first bracket of Rs 2 lakh to Rs 5 lakh.

With regards to indirect taxes, the Finance Minister proposed raising excise duty on SUVs from 27 percent to 30 percent while on mobile phones priced above Rs 2,000 it has been raised to 6 percent from the current 1 percent.

Cigarettes will cost more as specific excise duty increased by about 18 percent. Similar increases are proposed on cigars and cigarillos.

PTI