This very July, smoking cigarettes may not pinch the pocket but cinema tickets are unlikely to become cheaper. Instead stay home and watch a movie since DTH and cable TV operators may drop their prices once the goods and services tax (GST) is rolled out. Else, catch a play or a classical dance performance.
Smartphones too will cost less but those with a sweet tooth must pay for it — both pastries and cake, as also ice cream, could become dearer. Although the headline tax rate for movie tickets under GST will be 28%, they could become costlier since states are allowed to levy entertainment tax on behalf of local bodies.
Meanwhile, taxes on cable and DTH services are set to fall from July 1% to 18% from the current rate of 25%-40% — a total of the entertainment tax, service tax. Moreover, since the service providers are eligible to claim input tax credit, the tax incidence could be even smaller.