Phone Calls, Pizzas, Houses to Become Costlier

In his Union Budget, Finance Minister Arun Jaitley has hiked service tax rate from 12 per cent to 14 per cent. The increase means utilities will cost more, so bigger phone bills.

Ordering pizza will be costlier as will eating out in restaurants be.

Services like consultations with lawyers, gym memberships and club memberships will also cost more from the next financial year.

The hike in service tax will also impact transactions like buying a house - service tax is a component in property transactions.

The move is aimed to gear up for the implementation of the Goods and Services Tax with effect from April 1, 2016.