New Delhi, Feb 28 (UNI) The Union Budget 2007-08 presented by Finance Minister P Chidambaram in the Lok Sabha today evoked a mixed reaction from the common man with a section welcoming increase of threshold limit of tax and excise duty cut on many items while others bemoan the lack of any concrete steps to reduce the rising inflation which has sent prices of commodities soaring.
Some feel that the increase in the threshold limit for income tax payers by Rs 10,000 and reduction in excise duty of many non-agricultural items comes as relief to the common man, reeling for the past few months under the sharp rise in commodity prices.
Says Jaibhagwan Aggrawal, a Delhi University economics professor residing in the Kondli area of East Delhi,''the Finance Minister's announcement of increase in the threshhold of income tax to Rs 1.45 lakh is a welcome step as on one hand it will remove many of those from the lower and middle class from the category of tax payers, on the other, it will reduce considerably the tax burden for many people earning in the range of Rs 1.50 to 2.50 lakh.'' Further, the Finance Minister effecting a reduction in excise duty on several daily-use items like biscuits, food for pets, chemicals and plastics, mouth freshner, umbrellas, footwear, medical equipment, clothes and water purification devices will, many feel, also give relief to the commoner by cutting the daily expenditure on the above items.
The Finance Minister has brought down the ad valorem component of excise duty from 8 per cent to 6 per cent on petrol and diesel.
Also, peak rate of customs duty for non-agricultural products has been slashed from 12.5 per cent to 10 per cent. Duties on most chemicals and plastics have been reduced from 12.5 per cent to 7.5 per cent and customs duty on polyester fibers and yarn has also been reduced from 10 per cent to 7.5 per cent.
Says Inder Bhan, a Chartered accountant residing in the Mayur Vihar area of East Delhi,''on the face of it, the excise duty cut on these items may not seem of much significance but in the final analysis, it will go a long way in cutting the daily expenditure.'' At the same time, many sections have slammed the Union Budget for the absence of any concrete measures to curb rising in inflation which has, in the past few months, sent prices of commodities soaring.
''The common man had a lot of expectations from Budget 2007-08.
In the last year, the prices of essential commodities have spiralled with inflation hitting a two-year high,''Sumiti Aggrawal, a South Delhi housewife said.
Infact, the Agarwal family has, over the last few months, been faced with mounting grocery expenses.
''Be its onions, pulses, peas or potatoes, every item has got too expensive. Consequently, we have been faced with mounting expenses of daily use items every month. This is something that the Budget has failed to address,''Mrs Aggrawal said.
Infact, over the past few months, monthly expenditure on grocery items have risen by Rs 2,500 to Rs 8,500 a month.
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Some feel that the increase in the threshold limit for income tax payers by Rs 10,000 and reduction in excise duty of many non-agricultural items comes as relief to the common man, reeling for the past few months under the sharp rise in commodity prices.
Says Jaibhagwan Aggrawal, a Delhi University economics professor residing in the Kondli area of East Delhi,''the Finance Minister's announcement of increase in the threshhold of income tax to Rs 1.45 lakh is a welcome step as on one hand it will remove many of those from the lower and middle class from the category of tax payers, on the other, it will reduce considerably the tax burden for many people earning in the range of Rs 1.50 to 2.50 lakh.'' Further, the Finance Minister effecting a reduction in excise duty on several daily-use items like biscuits, food for pets, chemicals and plastics, mouth freshner, umbrellas, footwear, medical equipment, clothes and water purification devices will, many feel, also give relief to the commoner by cutting the daily expenditure on the above items.
The Finance Minister has brought down the ad valorem component of excise duty from 8 per cent to 6 per cent on petrol and diesel.
Also, peak rate of customs duty for non-agricultural products has been slashed from 12.5 per cent to 10 per cent. Duties on most chemicals and plastics have been reduced from 12.5 per cent to 7.5 per cent and customs duty on polyester fibers and yarn has also been reduced from 10 per cent to 7.5 per cent.
Says Inder Bhan, a Chartered accountant residing in the Mayur Vihar area of East Delhi,''on the face of it, the excise duty cut on these items may not seem of much significance but in the final analysis, it will go a long way in cutting the daily expenditure.'' At the same time, many sections have slammed the Union Budget for the absence of any concrete measures to curb rising in inflation which has, in the past few months, sent prices of commodities soaring.
''The common man had a lot of expectations from Budget 2007-08.
In the last year, the prices of essential commodities have spiralled with inflation hitting a two-year high,''Sumiti Aggrawal, a South Delhi housewife said.
Infact, the Agarwal family has, over the last few months, been faced with mounting grocery expenses.
''Be its onions, pulses, peas or potatoes, every item has got too expensive. Consequently, we have been faced with mounting expenses of daily use items every month. This is something that the Budget has failed to address,''Mrs Aggrawal said.
Infact, over the past few months, monthly expenditure on grocery items have risen by Rs 2,500 to Rs 8,500 a month.
MORE UNI
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