The Budget is good and clever on atleast 2 important counts
Firstly, zero tax for those with normal income upto 12 lakhs, though the tax slab of 4 to 8 lakhs is 5 percent tax and 8 to 12 lakhs is 10 percent. Thus, while people with income upto 12 lakhs have zero tax due to standard deduction benefit, people with income above 12 lakhs have to pay tax for the 4 to 8 and 8 to 12 lakhs slabs under the progressive tax system, though they also enjoy lower tax benefits.
Secondly for many items including motorcycles, Tariffs (Basic Customs Duty) have been lowered but an equivalent AIDC (Agriculture Infrastructure and Development Cess) has been levied. Thus, there will be no change in effective tariff, but the cess amount goes to the Central Government’s kitty. Meanwhile, tariffs for motorcycles with engine capacity not exceeding 1600cc has been reduced from 50% to 40% and those with 1600cc and above reduced from 50% to 30%. (making Harley Davidson and Ducati more affordable to avoid the tariff ire of Uncle Sam and please our Italian friends).
Clever isn’t it ?
