Zee Media Bureau


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New Delhi: Cars, cigarettes, branded garments, air travel will become more expensive with some of the service tax proposals announced in the Budget coming into effect from Wednesday (June 1).


With the imposition of 0.5 percent Krishi Kalyan Cess (KKC) from June 1, the total incidence of service tax will increase to 15 percent, thus making eating out, phone usage, air and rail travel, expensive.


Continuing the trend set by his many predecessors, Finance Minister Arun Jaitley had also imposed up to 15 percent excise duty on all tobacco products.


Following is a list of items that will turn costlier from June 1


1. Cars


2.Cigarettes


3. Cigar


4. Tobacco


5.  All services like bill payments, eating out, air travel


6. Ready made garments and branded apparel of more than Rs 1,000


7.  Gold and Silver; jewelery articles excluding silver


8.  Water including mineral water, aerated water containing added sugar or sweetening matter


9.  Goods and services above Rs 2 lakh in cash


10. Aluminum foil


11. Air Travel


12. Plastic bags and sacks


13. Ropeway, cable car rides


14.  Imported imitation jewellery


15.  Industrial solar water heater


16. Legal services


17. Lottery tickets


18.  Traveling by hiring stage carriage


19.  Hiring of packers & movers


20. E-reading devices


21.  Instruments for VoIP (Voice over Internet Protocol)


22.  Imported Golf Cars


23. Gold bars