New beginnings are supposed to be exciting but sadly the Financial Year 2022-23 (FY23) that starts from April 1, 2022, Friday is only likely to add to the inflation woes of the common man.

Come April 1 and the aam aadmi will need to shell out more for not just petrol and diesel but everything from essential medicines to cement and cooking gas to toll roads.

In a move that will allow manufacturers to raise prices of as many as 800 life-saving drugs by upto 10.7%, the National Pharmaceutical Pricing Authority of India (NPPA), on March 25, announced an annual change of 10.7% in the Wholesale Price Index (WPI) for calendar year (CY) 2021 over CY 2020.

“Based on the Wholesale Price Index data provided by the Office of the Economic Advisor, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, the annual change in the WPI works out as 10.76607 per cent during the calendar year 2021 over the corresponding period of 2020,” said the pricing authority in a memorandum issued March 25.

NPPA is tasked with limiting the prices that drug makers can charge to customers in order to keep life-saving medicines affordable.

Government-controlled natural gas prices will be revised to reflect the spike in prices, which result in a bonanza for gas producers such as Reliance Industries and state-run ONGC. The per-unit price paid for gas produced from gas fields on a nomination basis is likely to be increased to $5.93 million British thermal units from the current $2.9.

Similarly, Reliance and its partner bp plc are likely to get a record $9.9-10.1 compared to $6.13 currently for gas produced from D6 block in the KG basin, reported Economic Times earlier. The hikes are likely to be passed on to end the consumer in the form of deader CNG and piped cooking gas in key cities.

Increased gas prices impact various commodities such as fertilisers which are manufactured using natural gas. However, fertiliser prices are artificially kept low by government subsidies to help farmers.

Those thinking of buying a house in order to cash in on low-interest rates, might be surprised negatively as industry bodies expect housing prices in April.

Real estate developer body Credai-MCHI says rates are likely to go up by 10-15% in the month due to rising inflation in key commodities such as steel, cement, among other construction materials.

Colliers, an investment management company, in a recent report said real estate prices are likely to increase as construction costs have gone up by 12% year on year due to an increase in key raw materials such as cement, steel, copper, aluminium, and crude oil.

Steel prices increased 30% from March 2021 to March 2022; cement costs went up by 22% YoY; copper and aluminium were up by 40% and 44% respectively in the same period, it added.

“With rising material cost, developers will be compelled to increase prices as construction materials account for about 2/3rd share in the total cost of construction. Developers have already been operating on thin margins over the last few years. The rising cost will impact developers in the affordable and mid-market segments relatively more as they are already operating on lower margins. With wholesale price inflation (WPI) and material cost, both seeing a double-digit rise, the cost of construction can rise by a further 8-9% by December 2022,” said Ramesh Nair, CEO, India & Managing Director, Market Development, Asia, Colliers.

Buying, selling or and transferring cryptocurrency will become costlier from April 1 as the government will levy taxes on profits and transfers with the onset of the new financial year. A Tax Deducted at Source (TDS) at the rate of 1% of the consideration paid in relation to the transfer of virtual digital assets will be levied.

Also, a flat 30% tax on profits without any slab deduction will be applicable on profits from digital assets.

“All loss transactions will be ignored for tax calculation and only profit will be calculated. All trading pairs be it fiat to crypto OR crypto to crypto will be a taxable event. Apart from holding and trading even gifting of VDA be will taxable in the hands of the recipients. This tax bill even covers miners as no expenses of setting up mining are allowed as deduction. Therefore mining transaction cost of purchase will be Zero. What can be set off is only the cost of acquisition/purchase on VDA,” explains Manoj Dalmia, Founder, Proaasetz exchange.

“Only profit will be taxed flat 30% without any set off on losses and other costs if mining is included. The only cost of acquisition/purchase on VDA will be considered,” he further said.