Jaitley’s Last Full Budget Before 2019 Loksabha Elections
Changes in excise and customer duties for products which have been subsumed under GST
The Parliament session which begun this Monday will see a major change in the GST structure. Finance Minister Arun Jaitley is supposed to present the complete Union Budget in a different format than what was presented in the last four sessions.
This change is keeping in mind the general elections to be held in the first half of 2019 and this Budget to be the last one from BJP before the next government is chosen.
The Budget is going to have two components. The first one will refer to the existing schemes and upcoming schemes in the next financial year. The second part of the budget will revolve around the direct and indirect taxes. The Goods and Services Tax (GST) till date does not include the petroleum products and this will be the main agenda for the Union Budget discussion. These products are still charged under excise and customs duty. As per Arun Jaitley there is also some relief for the income tax payers as the tax base has been expanded. At an event which marked January 27 as the International Customs Day he made this declaration. This year there was an increase of 18.7% in the direct collection than what was done last year.
Before general elections the existing government is supposed to provide just a vote on account budget which includes just the expenditure part; changes in tax base and new schemes are not included in this.
Besides the next year general elections, this year will see several state elections. Hence the budget will also include some good news for the farm sector as recently the agricultural sector has not seen much growth and farmers are under deep stress. Now people wait to see how far the Finance Minister is able to fulfill the hopes of the masses.