<h1>2012 Budget Overhauls Service Tax: Rate Hiked from 10% to 12%, Expands Tax Base with Negative List Approach.</h1> The 2012 budget introduced significant changes to the service tax regime, including an increase in the standard rate from 10% to 12%. The changes aimed to expand the tax base by including more services under the tax net and simplifying the tax structure. The budget also proposed a shift towards a negative list approach, where all services are taxable except those specifically listed as exempt. These measures were intended to increase revenue and streamline the taxation process.