Yet another bad news to aam aadmi! You will now think twice to transport your goods via railways as service tax would come into effect from July 1 on railway freight.

With the imposition of service tax, the freight charges will shoot up by 3.6 per cent. The Central Board of Excise and Customs chairman, SK Goel has said that  the government gave service tax exemption on the good carried by the railways till June 30. Therefore, sending goods via railway would attract service tax from July 1, he added.

It may be noted that the railway has recently increased the parcel and luggage prices by 25 per cent. Right from vegetables to crude oil, railways carry many items. So, the increase on the railway freight would directly have an impact on the consumers as the prices of the vegetables and other goods that are transported on trains would increase the prices citing the service tax on railway freight.

In Andhra Pradesh, this would have a direct impact on by-elections. To travel from one corner of AP to the other corner of the state would take more than 12 hours and all the vendors depend on railways for transporting the goods. Since they are likely to increase prices in the wake of service tax on railway freight, the people (who are also voters) will undoubtedly get irked by the ever increasing prices. And the chances for Congress victory in by-polls turn apparently grim.
(Phani)