Service tax to be hiked from 16 percent to 18 percent
Posted on: 30/Jan/2017 12:49:39 PM
There is information that the service tax will be hiked from 16 percent to 18 percent in the Union Budget which is to be tabled on 1st February, There are lots of expectations about this budget because it is being tabled after the demonetization. When BJP party took charge in the centre it hiked the service tax from 12.36 percent to 14 percent in the year 2015. In this fiscal year, it has been decided to get revenue of Rs 2 Lakhs 31 thousand Crores through the service tax income.
At a time when only 15 percent service tax is levied, the Goods and Services Tax (GST) is to be soon implemented. The finance ministry has proposed four-tier GST rate structure 5, 12, 18 and 28 percent. Economists predict that Finance Minister Arun Jaitley will increase the service tax by 18 percent on the four tier basis. If increased air flight, food and phone service taxes will be increased.
