'Increase in service tax will lead to price rise'

Kolkata June 3: West Bengal Chief Minister Mamata Banerjee on Friday lashed out at the BJP-led central government for raising service tax by 0.5 per cent, claiming it would increase prices. “Increase in service tax will result in the price hike of all products,” Banerjee told reporters after an administrative meeting at the Town hall here. “On one hand, the Centre is stopping all funds, and on the other it is imposing more taxes,” added Banerjee. The Centre recently revised the service tax rates by adding a Krishi Kalyan Cess of 0.5 per cent which came into effect from June 1 this year. With the imposition of the cess, service tax on all taxable services has increased from existing 14.5 per cent to 15 per cent. Earlier, the rate was raised from 12.36 per cent to 14 per cent with effect from June 1, 2015 which was further increased to 14.5 per cent from November 15, 2015 with imposition of Swachh Bharat Cess of 0.5 per cent. (IANS)