Ravi Speaks: –
Life is going to be changed not only with Covid impact but also with an overall price shake-up.
Effective 1st July things with revised prices came into effect: –Just around 72 hours back effective 1st July-there has been a bigger change happening in the price structures of all the essential items of daily use. Whether it is Milk getting revised with a minimum of Rs.2/- or Gas Cylinder getting its price revised by around Rs.25/- approx. Revised SBI withdrawal & cheque book request charges have also come into effect from 1st July onwards.
Expenditure during the restricted ‘home stay’ in Lockdown: –
I was very closely experiencing one thing during our restricted homestay while following the strict orders of the lockdown just in the recent past and that was the obvious decrease in our expenditure in the day-to-day purchase of our essential items. This decrease was mainly because of our restricted movements and no outside purchases being affected at all. Also, there were no additional charges of moving around whether through freight or Petrol /diesel expenditure. That was right also for all of us since our efforts too were decreased for those extra earnings to be done. But look how the authorities have tried to get us back on the track of expenditure with the same earlier momentum existing before the Lockdown with the sudden announcements of such revision of rates?
The Heavier revision on LPG: –
The price of non-subsidised LPG cylinders has been hiked by Rs 25 effective from July 1. A domestic cylinder weighing 14.2 kg will now cost Rs 834.50 in Delhi. The price of a 19 kg cylinder has also been increased by Rs 76 and will cost Rs 1,550 in Delhi. In Mumbai and Kolkata too, the price will be Rs 834.50 per cylinder while in Chennai, one non-subsidised LPG cylinder will cost Rs 850.50.LPG prices are revised at the beginning of every month and with the latest hike from July 1, LPG price now has increased by Rs 140 per cylinder in the last six months. LPG is available only at the market price across the country, though the government provides subsidies to a select group of consumers.
The Heavier revision on Petrol/Diesel: –
The LPG price hike comes along with the steep hike in petrol price which is inching towards a three-digit figure in several metro cities. They say when there is a revision in Petrol or Diesel the cost of almost every edible thing or even the domestic utility items get revised enormously since the logistics make a bigger difference in the basic constituent cost of everything manufactured or produced. What would you call the Price being 106/-per litre in Bhopal for petrol or even Diesel following the suit with the same pace trying to cross the century milestone faster? Look at the present prices prevalent as on date: –
Though oil companies gave respite to consumers on Thursday, keeping fuel prices unchanged, the price pause has come after rates have been revised upwards in 32 out of 61 days between May and June. Petrol is now priced at Rs 98.81 a litre in the national capital, rising by a sharp Rs 8.41 per litre in the last 60 days. Similarly, diesel prices in Delhi also rose by Rs 8.45 per litre in the past two months to reach Rs 89.18 a litre.
When the cost of Milk prices goes up the other domestic chorus also get affected: –
When we talk to the people in a dairy segment about the reason for the increase in prices of milk and milk items- their answer is simply that it is mainly because of the rise in Food Inflation. It is quite understandable that whenever there is an increase in the milk prices the cost of other related items of domestic chorus automatically gets revised in proportion. This time the revision in milk prices is after one year and seven months in the case of AMUL and there is somewhere the revision is after almost two years.
Taxes to be procured even from the Banking sector in a revised way: –
In the banking segment, the withdrawal rates getting revised talk the other story about the holistic approach being applied by the government. State Bank of India has revised cash withdrawal and cheque book charges from July 1, 2021. Charges will be recovered beyond four free cash withdrawal transactions (including at Branch & ATM). Rs 15 plus Goods and Services Tax (GST) per cash withdrawal transaction at Branch Channel/ATM, SBI said in a notification. First, 10 cheques leave FREE in a financial year. Thereafter, extra charges for 10 leaf cheque Book are Rs 40 plus GST, 25 leaf cheque Book at Rs 75 plus GST. Emergency Cheque Book at Rs 50 plus GST for 10 leaves or part thereof. However, Senior Citizen customers are exempted. No doubt if it applies to SBI that means the rest of the banks will follow the suit.
GST categories revision for some items putting a bigger Impact: –
Finally, let me try to understand the impact of the overall reshuffling of GST categories also-which has brought about a very big change in the prices of many items like Cigarettes, Electronic Appliances, Mobile bills, Credit cards, Personal Care Products and mainly the Hotel Stays etc. This has been possible by changing the categories of these items from one to another.
The GST rates will bring in tax parity across the country and will lead to a regime of ‘one nation, one tax’. The GST has been primarily categorised into four tax slab rates- 5%, 12%, 18% and 28%. Gold, rough diamond has been taxed under a separate slab of 3 per cent. Some of the above-mentioned items have been put in the above-raised levels and as a result, there is either 3% or even 6% to 12% revision in their GST tax structures putting a direct impact on the price factor and that way on the pockets of the common consumers.
No Chance for Petrol/Diesel to be included in GST-Bracket: –
Yes, we had a great expectation that the Government would surely bring the Petrol/Diesel into the GST fold and that would give them a way out to ease out on some essential items as far as their tax levying was concerned-but according to one of the senior BJP leaders while replying in the Parliament-Government would not at least for coming 8-10 years bring Petrol/Diesel under the GST bracket. So let us be cool on that front as well.
God be with all the Humans trying to manage the show at the top in the authorities.