New Delhi: Rains in the month of sultry June may have given some respite to the common man. However, 15% service tax, LPG price hike and surge in the aviation fuel prices starting today, are no respite to the ‘aam aadmi’ this month onwards.

Starting today, the cost of services, including eating out, traveling, internet services, mobile bills an so on; will go up by 0.5% of the total bill with the introduction of  new Krishi Kalyan Cess. This cess will be levied in addition to the prevailing service tax.

Imposition of the Krishi Kalyan Cess was announced by Finance Minister, Arun Jaitley in this year’s Union budget, in order to build a welfare fund for farmers.

What changes in your existing bill amount:

With the addition of the Krishi Kalyan Cess of 0.5 per cent, Swacchh Bharat Cess at 0.5 per cent, the total service tax will now go up to 15 per cent from June 1. This is in addition to the VAT and service charges that are paid by customers.

After adding the 10% Service charge, Swachh Bharat Cess, Krishi Kalyan Cess and Value-added tax, there will be an increase of around 300 Rs. on a bill amounting to Rs. 1000, which is likely to shake your monthly budget to some extent.

Through these additional cesses, the government looks to find ways and means to finance the rising expenditure burden resulting from implementation of the 7th Seventh Pay Commission and One Rank One Pension scheme.

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