Budget Box: Super rich tax, other proposals to add Rs 18,000 cr to exchequer
Government exchequer would gain Rs. 18,000 crore from the new tax proposals in Budget 2013-14 including 10% surcharge on super rich and higher duties on mobiles, cigarettes and SUVs.
A surcharge of 10% has been imposed on persons (other than companies) whose taxable income exceeds Rs 1crore.
Besides, surcharge has been doubled to 10% on domestic companies whose taxable income exceeds Rs 10 crore. For foreign companies, surcharge has been raised from 2 % to 5 %, if the taxable income exceeds Rs 10 crore.
These additional surcharges would be in force for only one year. Education cess would remain at 3%.
A tax relief of Rs 2,000 for the Tax Payers in the first bracket of Rs 2 lakh to Rs 5 lakh has been provided in the Budget.
The Budget proposed increasing excise duty on SUVs from 27% to 30% while on mobile phones priced above Rs 2,000 it has been hiked to 6% from the current 1%.
Specific excise duty on cigarettes has been raised by about 18%. Similar increases are proposed on cigars and cigarillos.