Jaitley to present maiden Budget amid expectations of tax sops

July 6, 2014

Jaitley BudgetNew Delhi, Jul 6: Finance Minister Arun Jaitley's maiden Budget on Thursday is expected to be a tightrope walk of trying to meet demands for tax sops especially from the middle class and pursuing fiscal prudence to spur investment and growth.

The Budget for 2014-15 will be presented by the new BJP-led government, which rode to power on promises of providing relief to inflation-hit common man, amid falling growth, stagnating investments, high fiscal deficit and external crisis.

There are high hopes from the new government that it will raise tax slabs and also significantly hike the annual tax exemption limit to provide a much-needed relief to salaried class, which is reeling under the stubbornly high inflation.

For boosting investment, Jaitley is expected to announce tax incentives for industry. As a prelude to the Budget, the government has already extended the excise duty concessions for automobile and consumer durable sectors till December.

The Finance Minister is also expected to take a call on reducing duties on gold import, which were increased last year to check ballooning current account deficit.

He could also provide relief to farmers to help them tide over the impact of deficient monsoon which could lead to fall in agricultural output. The government may set up a price stabilisation fund, as promised in the BJP's manifesto. On the other hand, Jaitley, though not a hard-core economist, is expected to pursue the path of fiscal prudence and not sacrifice it at the altar of populism.

He has already indicated that the government will have to refrain from mindless populism.

"If you indulge in mindless populism you burden the exchequer...you convert yourself into a high taxation society. It does not work. Therefore, if you have to follow a path of fiscal prudence, (you should) have a certain amount of discipline," Jaitley had said recently.

Setting the tone, Prime Minister Narendra Modi recently hinted at tough actions in the Budget.

"I am well aware that my steps may dent the immense love that the country has given to me. But when my countrymen would realise that these steps would result in getting the financial health back, then I will regain that love.

"If these tough measures were not taken, the financial situation would not improve. We need to take action wherever required. We will have to take tough and bitter financial decisions to put the country on the path to good fiscal health," Modi recently said in Goa.

Budget may be harsh on smokers as excise duty on cigarettes and tobacco products is expected to go up. At the same time, the government may impose higher tax on people earning more than Rs 10 crore annually.

India Inc has already presented its wish list during the customary pre-budget meeting to Jaitley, while the issues of common man have been put forward by various stakeholders including trade unions and other bodies.

In order to provide clarity and improve investor sentiment to foreign investors, there would be reference to retrospective tax amendment in Budget.

The foremost problem that the minister would have to deal with is the retrospective tax amendment issue. The Vodafone case is stuck in arbitration and not much can be done to resolve the impasse as the amount involved is Rs 20,000 crore.

The Modi government is expected to make a general statement of intent to clarify its position with regard to retrospective tax amendment with a view to ensuring a stable tax regime. This would help both– the government as well as the investors.

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News Network
April 25,2020

Chennai, Apr 25: Civic authorities on Saturday turned down a plea for exhuming the body of a doctor who died of COVID-19 here and burying it in another cemetery, citing health experts' view that it was unsafe to do so. Citing a request from the wife of the deceased doctor to allow exhumation and then re-burial at a cemetery in Kilpauk, the Greater Chennai Corporation said it sought a report from a committee of public health experts to ascertain the feasibility of entertaining her plea.

The spouse of the doctor had appealed to the GCC on April 22 to exhume and bury again her husband's body. She had said that burial in the Kilpauk cemetery here was her husband's last wish and he had conveyed it to her before he was put on a ventilator.

The report of experts has said that "it is not safe" to exhume and again bury the body of a COVID-19 victim and hence "it is not possible to accept her request," the GCC said in an official release. On April 19, a city-based 55-year-old neurosurgeon died of coronavirus and his burial at the Velangadu crematorium here was marred by violence.

A mob which falsely feared that the burial may lead to the spread of contagion had attacked the corporation health employees and associates of the deceased doctor. The doctor's wife and son also had to leave the burial ground in view of the violence.

The body was brought to Velangadu as people of Kilpauk area had opposed his burial there. Over a dozen men involved allegedly in violence were arrested and remanded to judicial custody. Later, in a video message, the surgeon's wife had said that it was her husband's last wish to be interred at the Kilpauk cemetery as per Christian rituals

Chief Minister K Palaniswami and DMK president M K Stalin had spoken to her on Wednesday over the phone and condoled her husband's death.

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News Network
January 27,2020

New Delhi, Jan 27: Remember the story of two friends coming face-to-face with a bear in a forest? One of the two friends climbs the tree to save his life and the other, not knowing how to, lays on the ground, breathless, pretending to be dead.

Well, that lesson turned out to be useful for this man who pretended to be dead when a tiger had both his paws on the man's chest.

Yes, that is right. IFS officer Parveen Kaswan recently shared a video of a man lying under a tiger, with their faces extremely close to each other with the caption, "You want to see how does a narrow escape looks like in case of an encounter with a #tiger. #Tiger was cornered by the crowd. But fortunately, the end was fine for both man and tiger. Sent by a senior."

Another Twitter user shared the full 30-second video in the comments. He also said that the incident occured in Tumsar in Bhandara district, Maharashtra. The spine-chilling clip shows a tiger running freely in the fields trying to avoid people who have surrounded him and are trying to shoo him away.

In his quest to run away, the scared tiger grabs a human. When he sees that people are still approaching him and trying to scare him away, he gets up and runs away for his life. All this while, the man who was captured by the animal lays still on the ground and does not make an attempt to get free.

This is what stuck with Twitter and they are praising the man for his presence of mind.

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News Network
February 14,2020

New Delhi/Washington, Feb 14: India has offered to partially open up its poultry and dairy markets in a bid for a limited trade deal during US President Donald Trump's first official visit to the country this month, people familiar with the protracted talks say.

India, the world's largest milk-producing nation, has traditionally restricted dairy imports to protect the livelihoods of 80 million rural households involved in the industry.

But Prime Minister Narendra Modi is trying to pull all the stops for the US President's February 24-25 visit, aimed at rebuilding bonds between the world's largest democracies.

In 2019, President Trump suspended India's special trade designation that dated back to 1970s, after PM Modi put price caps on medical devices, such as cardiac stents and knee implants, and introduced new data localization requirements and e-commerce restrictions.

President Trump's trip to India has raised hopes that he would restore some of the country's US trade preferences, in exchange for tariff reductions and other concessions.

The United States is India's second-largest trade partner after China, and bilateral goods and services trade climbed to a record $142.6 billion in 2018. The United States had a $23.2 billion goods trade deficit in 2019 with India, its 9th largest trading partner in goods.

India has offered to allow imports of US chicken legs, turkey and produce such as blueberries and cherries, government sources said, and has offered to cut tariffs on chicken legs from 100 per cent to 25 per cent. US negotiators want that tariff cut to 10 per cent. The Modi government is also offering to allow some access to India's dairy market, but with a 5 per cent tariff and quotas, the sources said. But dairy imports would need a certificate they are not derived from animals that have consumed feeds that include internal organs, blood meal or tissues of ruminants.

New Delhi has also offered to lower its 50 per cent tariffs on very large motorcycles made by Harley-Davidson, a tax that was a particular irritant for President Trump, who has labelled India the "tariff king." The change would be largely symbolic because few such motorcycles are sold in India.

President Trump will be feted in PM Modi's home state of Gujarat, then hold talks in New Delhi and attend a reception that the hosts have promised will be bigger than the one organised for former president Barack Obama in 2015.

But it is far from clear whether India's offers will be enough to satisfy US Trade Representative Robert Lighthizer, who cancelled plans for a trip to India this week. Instead, he has held telephone talks with Commerce Minister Piyush Goyal.

The US dairy industry remained sceptical on Thursday that a viable deal is at hand.

"We're always looking for market access, but in terms of India, as of today I'm not aware of any real progress going on," said Michael Dykes, president of the International Dairy Foods Association and a member of USTR's agricultural trade policy advisory committee.

Mr Dykes said the US dairy industry was looking for access in viable commercial quantities.

A USTR spokesman and India's trade ministry did not respond to requests for comment.

A parliament panel is reviewing a draft data privacy law that imposes stringent controls over cross-border data flows and gives the government powers to seek user data from companies.

It is not clear whether it will be passed, or in what form, but the possibilities have unnerved US companies and could raise compliance requirements for Google, Amazon.com Inc, and Facebook.

The draft law is not part of the trade discussions, Indian officials say, because the issue is too difficult to resolve at the same time.

"The privacy and localization piece will be raised independently and in concert with the trade discussions," said a Washington-based source with knowledge of the US administration's thinking.

President Trump on Tuesday was non-committal about sealing a trade deal before his visit. "If we can make the right deal, we'll do it," he told reporters.

Two US sources said progress had been made on proposed alterations to the medical device price caps. India's new import tariffs on medical devices, walnuts, toys, electronics and other products on February 1 surprised US negotiators, however.

The new tariffs were aimed at China, which also makes medical devices, according to an Indian government source. "We have to protect our market and our companies," the source said.

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