Should the government tax services as well?

[Aditi77_k]

The budget is due and the expectations are high. The revenue from service tax is just four percent of total tax revenue. There are a host of services, which are exempted from the service tax net. These are domestic services, public administration, defense and community services.

The industrial sector bears most of the burden of paying taxes. But the services sector is almost still exempted. And bringing it under the tax umbrella will sure give rise to a controversy.

The defense personnel will have their own point of view for not paying taxes. After all they are the ones who sacrifice their lives for the pride of the nation. The domestic services are so widely used that burden of paying the taxes will again fall on the common man. For public administration services again the common man will have to pay.

What is your view on the subject…Should services be taxed or not? Or they should be left alone for the benefit of common man?

[Ankur]

The finance minister has tapped the service sector this time by raising the service tax from 8 to 10 %. Also 15 other services are included in the tax net.

Thus now travelling has become costlier and so has eating out. Another blow for us is the increase in the cable bill.

The rural farmer benefits the most from this budget. It is the people in urban areas who will have to share the burden.