Bud­get could make air travel, eat­ing out dearer

Hindustan Times ST (Mumbai) - Live - - FRONT PAGE - Suchetana Ray

NEW DELHI: Union fi­nance min­is­ter Arun Jait­ley could raise the ser­vice tax rate in the Bud­get to be pre­sented on Fe­bru­ary 1, a move that will in­crease the cost of eat­ing out, go­ing to the movies or fly­ing.

Two se­nior gover nment sources told Hin­dus­tan Times on Fri­day that the ex­ist­ing rate of 15%, which in­cludes two cesses, could be raised by an­other 0.5% to 1%.

“The gov­ern­ment might want to in­crease the ser­vice tax so that theshiftto GSTis­no­tabrupt,” one of them said, re­fer­ring to a pro­posed a Goods and Services Tax that has missed sev­eral dead­lines be­cause of po­lit­i­cal wran­gling. Jait­ley has said he wants to roll it out by July 1.

Ser­vice tax is a charge ser­vice providers col­lect from cus­tomers and then pass on to the Cen­tral gov­ern­ment.

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