How Budget makes the aam aadmi pay more

Sitting for GMAT? Taking a package tour? Good. Be prepared to pay more as service tax.

Reams have been written about what the Budget means for businessmen. But it also affects many other groups.

Students who are planning to write the GMAT or GRE should be prepared to shell out more from April. Fees on coaching classes are set to rise with the increase in service tax rate.

The peak rate of service tax has been increased to 12 per cent from 10 per cent. On a fee of Rs 50,000 service tax is currently Rs 5,000 (education cess additional), from April this will increase to Rs 6,000.

Students who train in a dance or sports academy may also have to pay a higher fee. Accommodation and canteen service charges at PG hostels may also go up.

But it is not all bad.

The Budget has however offered some relief to the student community and the parents by putting school education and all recognised higher education out of the purview of service tax in 2012-13.

It also proposes to set up a credit guarantee fund to back up education loans. That may make bank loans for education easier to obtain and may reduce their cost as well.

Women at home will find finances getting tighter and may have to wrestle with men for more money to mange the household.

The across the board increase in excise duty to 12 per cent from 10 per cent is set to increase the price of household items ranging from processed foods, beauty products and kitchen appliances.

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How Budget makes the aam aadmi pay more