Inflation is set to soar further with freight tariff on certain goods such as cement, iron ore and coal are set to rise by more than 5%. This is because service tax and busy season charge will come into force from Monday.Railways will impose an additional 3.708% service tax and another 2% busy season surcharge on goods loading from October 1, which will increase the price of several commodities. Fortunately, the 2% busy season surcharge will not be levied on food grains, flours, pulses and chemical manures. According to railways notification, the busy season charge will remain in force from October 1 to March 31, 2013.
Though levy of busy session charge is a routine affair as its falls under dynamic fare pricing, the move has come at a time when the UPA government is battling with higher inflation, which has touched double digits at 10.03% in August — up from 9.86% in the previous month.
(Times Of India)
