Union Budget 2015-16: Service tax hike: phoning, eating out, house loans to be dearer

Presenting his 2015-16 budget before Parliament today, finance minister Arun Jaitley hiked the service tax rate from 12 per cent to 14 per cent. This means utilities will cost more, including telephony and related services.

Eating out at restaurants, or even ordering pizza at home, will also be costlier, as will services like consultations with lawyers and club or gym memberships.

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 1 April 2016.