Select goods, services to be dearer

Common man has a reason to worry as some select goods and services will be dearer from third week of next month. Amid high inflation, the finance ministry on Wednesday announced that the government will raise taxes on certain goods and services including kitchenware to 18 per cent from current 12 cent.

The decision was taken after the two-day 47th GST Council Meeting that will be made effective from 18 July, 2022.

Following the announcements by finance minister Nirmala Sitharaman, it is expected that higher taxes would put an additional burden on households who are already facing a surge in food and energy prices. As per the last RBI monetary policy statement, the inflation pressure will continue in this current fiscal year.

According to the finance ministry statement, kitchen utensils, led lights, farm machinery, solar water systems as well as services like work contracts for roads, irrigation projects, hospitals and educational institutions would now be charged at 18 per cent from an earlier rate of 12 per cent.

Among other things, the statement added, the GST Council also approved an increase in tax on petroleum and coal bed methane to 12 per cent from 5 percent earlier, besides raising rates for packaged food items.

“While the GST on ewaster was revised from current 5 per cent to 18 per cent,” it said.

Besides, the government will now impose a 18 per cent tax on cheques, lose or in book form and parts of goods of heading 8801.

“However, maps, and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed will invite a 12 per cent GST. All these products were earlier charged nil,” the statement added.