Finance Minister Nirmala Sitharaman on Friday declared the Union Budget 2019, in which she announced a hike in the prices of an array of items, ranging from petrol and diesel to gold.
Presenting the maiden budget of Modi 2.0 government in Lok Sabha, Nirmala Sitharaman, the first full-time woman Finance Minister, proposed measures to ease liquidity crisis facing shadow banking sector (NBFCs) and providing Rs 70,000 crore capital to public sector banks while seeking to raise additional resources through privatisation of some PSUs.
She also announced a hike on the tax on petrol and diesel which will increase the final price of the fuel. Moreover, the import duty on gold has also been increased, levying an additional surcharge on super rich and brought a tax on high-value cash withdrawals.
Here what all have become costlier:
Here are the things which have gotten cheaper:
Meanwhile, in a major relief to taxpayers, an additional deduction of Rs 1.5 lakh on interest paid on loans borrowed up to March 31, 2020, on purchase of a house up to Rs 45 lakh has been announced in the Union Budget. Corporate tax on companies with turnover of up to Rs 400 crore has been slashed to 25 per cent from the current 30 per cent. Presently, the lower tax rate is applicable on companies having a turnover of up to Rs 250 crore.
Also, the government has asked the GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent. Customs duty on certain parts of EVs has been reduced.
Sitharaman also proposed to make Aadhaar and PAN interchangeable for the purpose of filing Income Tax returns. In order to promote a cashless economy, Nirmala Sitharaman announced that business establishments with an annual turnover of Rs 50 crore will have to use BHIM, UPI, Aadhaar Pay, NEFT, RTGS modes of payments with no charges or merchant discount rates will be imposed on customers or merchants. RBI and banks will absorb these costs, she added.
She proposed an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles leading to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the payer.
She said the government will spend Rs 100 lakh crores for infrastructure in next five years.
The disinvestment target for FY20 has raised to Rs 1.05 lakh crore from Rs 90,000 crore set in the interim budget and government will continue with disinvestment of PSUs in the non-financial space as well. Regulation of housing finance companies has been moved to the Reserve Bank of India (RBI) from the NHB. The government proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation.
(With PTI inputs)