Hike in gold, fuel prices to burn a hole in pocket, say Mumbaikars

MUMBAI: While announcing the huge change in the tax slab in this year's Budget, finance minister Pranab Mukherjee said that it would benefit 60% tax payers in the country. While many did appreciate the change in the tax system, an equal number claimed that the Budget has brought little respite to them.

"I think it's a happy change for tax-payers. Not only has the government brought down the tax slab, they have also made the system much clearer to us. Now, with the process made simplified, people will voluntarily come forward and pay tax," said Devendra Shastri (37), a media professional. Aarti Mhatre (26), an HR executive, seemed equally happy with the new system.

"This is a great move for someone like me. Until now, I paid 20% tax but from now on, I'll be shelling out half the amount," Mhatre said.

However, those falling in the higher salary bracket do not seem too keen on it. "This doesn't bring any respite to those who are in the higher brackets. We'll end up paying 30% of our income, like every year," said Ajay Karkera, a banker who is also not happy that the excise duty on fuels has gone up. "Just recently, petrol and diesel prices were increased and now, they repeat it once again. Petrol already costs Rs 48-Rs 49 per litre, which is likely to go up by a few rupees," he added. With the hike in fuel price, many fear a rise in transport fares as well.