With just two days left for the union budget 2017-18 for the financial year starting from April 2017, many services will have a high rise in the budget. According to financial experts, Finance Minister Arun Jaitley may announce the rise in the services of food bills, air travel and phone bills.
In Budget, eating food in restraunts, phone bills, air travelling and many other services will have a price hike. This rise is in accordance with the applicability of GST (Goods and Service Tax). Finance Minister Arun Jaitley will put in efforts in the union Budget to apply GST with effect from 1st April. He may increase service tax from currently 15% to 16-18%. The aim behind this move will be to make the rates closer to the rates as in GST.
The efforts for the rates that will be charged in GST will be combined with the rates released in union budget. According to Tax Experts, the tax slab recommended in GST will be in rates 5%, 12%, 18% and 28%.
If these recommendations were made, then this will be 4th time announcements of rise by Finance Minister Arun Jaitley. Before this announcement, service tax was increased from 12.36 to 14% on 1st June 2015. Then after increased on 15th November 2015, it increased to 14.5%. Then in last budget, it was finally brought to 15%.
The union budget 2017-18 will be presented in 1st February 2017 for the financial year starting from April 2017. Till last year, it is usually presented in the last working Day of February.