Gujarat Global News Network, New Delhi
In her first budget Finance Minister Nirmala Sitharaman on Friday proposed to increase both the Special Additional Excise Duty and Road and the Infrastructure Cess by Rs 1 per litre on petrol and diesel. This will result in a rise in petrol and diesel prices by Rs 2 per litre in the country.
“Crude prices have softened from their highs, this gives me room to review excise duty and cess on petrol and diesel,” Sitharaman said while presenting her first Union Budget in Parliament. “I proposed to increase special additional excise duty and road and infrastructure cess each by Rs 1 per litre on petrol and diesel.” This would effectively mean increase of Rs.2.30 per litre in petrol and Rs. 2.20 in diesel.
While there has been no change in income tax slab the FM said those earning more than Rs. 2 crore per annum will have to pay more tax. Those with high income bracket need to contribute more to the nation, she added. For income of more than Rs.2 crore the tax burden will go up by 3 percent and for Rs. 5 crore the tax burden will rise by 7 percent.
To promote cashless transactions the FM proposed 2 percent tax on cash withdrawals exceeding Rs.one crore from bank account. There will be no tax on merchant discount rate for cashless transactions.
To fulfil Prime Minister’s dream of “Housing for all” the FM proposed Rs.1.5 lakh deduction on interest rate for loans.
Clean energy and green energy is the future and the government is committed for it, she said. The government would provide a tax incentive of Rs.1.5 lakh reduction on loans to buy electric vehicles. FM said that India should be global hub of manufacturing e-vehicles. The government has moved the GST council to reduce the tax from 12 to 5 percent.
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