As made out in the Union Budget, 2015, the official increase in Service Tax from 12% to 14% will become effective from June 1, 2015, imposing additional burden on the middle class which uses services from the outlets and providers from telephones to Internet to restaurants, which are inevitable and a sure source of revenue for the government.
In the Budget 2015, it had been proposed from a date to be notified and the Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14% would become applicable.
The provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from 1st June, 2015, as it would be subsumed in the service tax rate of 14%, said a statement from the ministry.
Certain other changes have also been notified with effect from 1st June, 2015. However, the Swachh Bharat tax will be effective soon, perhaps giving a little more time to the common to adjust to the reality that they are living on earth in the most inhospitable tax structure.
In all, Indian tax payer is the most taxed in the world, at a whopping 65%, according to an estimate and very soon it will become more going by the government’s pro-corporate and anti-middle Class tax structure, if one takes into account both direct and indirect tax and repeated tax structure of the country.
Just to eat Idli in a restaurant, imagine the number of ingredients that go into making it. While buying them, the restaurant owner pays indirect tax such as excise duty and transportation toll, and salary of the workers which are taxed and factored into the price of Idli. Now the person who eats it will pay for all that and then the service tax.
No wonder, many Indians flee to Dubai where there is tax and many cine actors buy property there than India.
Neither the Congress nor the BJP have spared the middle class which bears the brunt of government excesses due to corruption that eventually results in heavy state expenditure and more taxes.