“Budget 2018 will provide ease of living for individuals,” says Finance Minister Arun Jaitely.
New Delhi: On Thursday, Finance Minister Arun Jaitely presented the Union General Budget 2018-19 in the Parliament. The Budget aims to strengthen agriculture, rural development, education, health, MSME and infrastructure sectors.
In this budget the government marked a slogan of “ease of living” by focusing mainly on the agriculture and rural sectors. They also aims at improving the life’s of the farmers.
Mr. Jaitley started his proposed budget by saying, “Budget 2018 will focus on strengthening agricultural and rural economy. When our government took over India was considered one of the fragile five economies of the world; we have reversed it; India is today fastest growing economy. India is today a USD 2.5 trillion economy and will become fifth largest economy in the world from the present seventh largest. Govt focusing on ease of living now. We are firmly on path to achieve 8% growth”.
Highlighted Points of The Union Budget 2018-19:
1. No changes were made in the personal income tax rates. Mr. Jaitley said, “Govt has made many positive changes in the personal income tax rates applicable to individuals in the last three years, therefore, I do not wish to make any changes to this.”
2. Exemption of interest on income on bank deposits raised to Rs 50,000 for senior citizens.
3. MSP for all unannounced kharif crops will be one and half times of their production cost like majority of rabi crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19 from 8.5 lakh crore in 2014-15.
4. No hardship will be faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration.
5. Deduction of RS 40,000 allowed for transport, medical reimbursement for salaried tax payers. Moreover the salaried taxpayers, pensioners requires no documents, bills to claim Rs 40,000 standard I-T deduction on travel, medical expenses.
6. Limit on the investment in interest-bearing LIC scheme has now being doubled to RS 15 lakhs from RS 7.5 lakhs for the senior citizens.
7. Cash payments exceeding Rs 10,000 by trusts and institutions will be disallowed in a bid to curb cash economy.
8. Tax will be charged upon the long term capital gains from equities; 10% tax will be charged on long term capital gains in excess of Rs 1 lakh.
9. Education cess increased to 4% from 3% to collect additional RS 11,000 crore.
10. Custom duty on cosmetic products and household products has doubled to 20%.
11. Import duty on fruit juice has increased from 30% to 50%.
12. Excise duty on Petrol and Diesel is reduced by RS 2 per litre basic and additional RS 6 per litre. But RS 8 per litre is introduced as road cess. Therefore the consumer will have to pay the same price for the Petrol and Diesel.
13. Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15 % and import duty on smart watches, wearable devices, footwear has being doubled to 20 %.
14. Custom duty on jewellery is increased from 15% to 20%.
15. Custom duty on cigarettes, sunglasses, toys, bus and truck tyres has also being increased.
16. Import of Solar tempered glass for manufacture of solar cells exempted from customs duty.
17. Custom duty on vegetable oil like groundnut oil, safflower seed oil hiked from 12.5% to 30%; on refined edible vegetable oil from 20% to 35 %.
18. Custom duty on mobile phones hiked from 15% to 20%.
Mr. Jaitley believe that the Budget 2018 will boost the agriculture and rural economy. He also believe that the different decisive actions that the present government has taken from the time they began their regime, will made live easy for the poor and middle class people of the country.
Meanwhile, it is the last budget of the present regime government, since general elections will be held next year. In 2019 an interim Budget will be presented which will then be completed by the new government that sworn in the post-poll.