Jaitley rules out any cut in excise duty on petrol, diesel

Agencies
June 18, 2018

New Delhi, Jun 18: Union Finance Minister Arun Jaitley on Monday urged citizens to pay their due share of taxes “honestly” to reduce dependence on oil as a revenue source, and virtually ruled out any cut in excise duty on petrol and diesel, saying it could prove to be counter-productive.

While salaried class pay their due share of taxes, Mr. Jaitley said “most other sections” have to improve their tax payment record, which is keeping India “far from being a tax compliant society”.

“My earnest appeal, therefore, to political leaders and opinion makers ...would be that evasion in the non-oil tax category must be stopped and, if people pay their taxes honestly, the high dependence on oil products for taxation eventually comes down. In the medium and long run, upsetting the fiscal maths can prove counter-productive,” Mr. Jaitley said.

In a facebook post titled ‘The Economy and the Markets Reward Structural Reforms and Fiscal Prudence’, Mr. Jaitley said that in last four years, the Central government’s tax-GDP ratio has improved from 10 per cent to 11.5 per cent. Almost half of this, 0.72 per cent of the GDP, accounts for an increase in non-oil tax-GDP ratio.

Fiscal prudence
The level of non-oil taxes to the GDP at 9.8 per cent in 2017-18 is the highest since 2007-08 — a year in which our revenue position was boosted by buoyant international environment, he said.

“This government has established a very strong reputation for fiscal prudence and macro-economically responsible behaviour. We know what happened during the Taper Tantrum of 2013. Fiscal indiscipline can lead to borrowing more and obviously increase the cost of debt.

“Reliefs to consumers can only be given by a fiscally responsible and a financially sound central government, and the states which are earning extra due to abnormal increase in oil prices,” Mr. Jaitley said.

Chidambaram's suggestion
In an apparent dig at senior Congress leader P. Chidambaram’s remark that tax on oil should be cut by ₹25 a litre, Mr. Jaitley retorted “this is a ‘trap’ suggestion“.

Without naming Mr. Chidambaram, Mr. Jaitley noted that the “distinguished predecessor” had “never endeavoured to do so himself.”

“It is intended to push India into an unmanageable debt — something which the UPA government left as its legacy. We must remember that the economy and the markets reward structural reforms, fiscal prudence, and macro-economic stability. They punish fiscal indiscipline and irresponsibility. The transformation from UPA’s “policy paralysis” to the NDA’s “fastest growing economy” conclusively demonstrates this. The government is aspiring to improve the tax-GDP ratio,” he said.

Last week, Mr. Chidambaram claimed that it was possible for the Centre to cut tax by up to ₹25 a litre on petrol prices but the Modi-government would not do so.

As per government estimates, every rupee cut in excise duty on petrol and diesel will result in a revenue loss of about ₹ 13,000 crore.

The price of Indian basket of crude surged from $ 66 a barrel in April to around $ 74 currently.

Mr. Jaitley said despite higher compliances in new system, as far as the non-oil taxes were concerned, India was still far from being a tax complaint society.

“Salaried employees is one category of tax compliant assessees. Most other sections still have to improve their track record. The effort for next few years has to be to replicate the last four years and improve India’s tax to GDP ratio by another 1.5 per cent. The increase must come from the non-oil segment since there is scope for improvement,” he said.

These additions, Mr. Jaitley said, have to come by more and more people performing their patriotic duty of paying the non-oil taxes to the State.

“The tragedy of the honest tax payer is that he not only pays his own share of taxes but also has to compensate for the evader,” he said.

The Centre collected taxes in the form of income tax, its own share of the GST and the customs duty. 42 per cent of the central government taxes are shared with the States.

State governments collected their 50 per cent from the GST besides their local taxes. These were independent of taxes on petroleum products. The States charged ad valorem taxes on oil. If oil prices go up, the States earn more, he said.

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News Network
March 30,2020

New Delhi, Mar 30: Prime Minister Narendra Modi on Monday interacted with Indian ambassadors and high commissioners abroad and urged them to remain alert to developments in global efforts against COVID-19 including breakthroughs to help the country's fight against the coronavirus.

External Affairs Minister S Jaishankar and Foreign Secretary Harsh Vardhan Shringla were also present during the interaction through video-conferencing.

"Coming together for India PM interacted with Indian Ambassadors/High Commissioners abroad and urged them to remain alert to developments in global efforts against COVID-19 including breakthroughs to help our national efforts to fight COVID19," External Affairs Ministry spokesperson Raveesh Kumar said in a tweet.

"PM appreciated the efforts of our missions in helping Indians abroad, in particular, students and workers," he added.

The number of positive coronavirus cases in the country stood at 1,071 on Monday. It includes 29 deaths and 99 people, who have been cured of the highly contagious virus.

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Agencies
April 13,2020

With the beginning of Ramzan just about 10 days away, Maulana Khalid Rashid Firangi Mahali, the chairperson of the Islamic Centre of India and the Imam of Aishbagh Eidgah has issued an advisory to people on how to observe Ramzan during the lockdown.

In his appeal, the Sunni cleric, who is a member of the All India Muslim Personal Law Board (AIMPLB), has urged people that the holy month of Ramzan is likely to begin from April 25. The lockdown may also be extended beyond April 14.

"In this case, it is advised that people observe roza (fast) and do iftar (meal to break the fast) in the evenings at their homes. There should be no congregational prayers in the mosque but only at homes. Only those who stay or are staying at a mosque should pray there and that too while maintaining adequate social distance," said Maulana Khalid Rashid Firangi Mahali in a video message.

The cleric, in the 12-point advisory, has asked people to fast as is mandatory in Islam and to pray for the end of the pandemic, during the month of worship.

The advisory says that those who used to arrange for iftar of poor and needy persons at the mosque, should continue to do so this year as well but the food should be distributed to the needy.

"Those who conducted Iftar parties in Ramzan should give the money kept for it in charity. Not more than five people should be present at any time at a mosque," the cleric added.

Earlier for April 8 and April 9, both Shia and Sunni clerics had appealed to the people to stay indoors and pray on the occasion of Shab-e-Baraat, respectively. To ensure full compliance of the lockdown, the gates of several graveyards in the city were locked up by the caretakers since traditionally Muslims visit graves of their ancestors on Shab-e-Baraat--the night of Allah's forgiveness, to pray for their ancestors.

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News Network
January 13,2020

Jan 13: India lost more than $1.33 billion to internet restrictions in 2019 as Prime Minister Narendra Modi’s government pushed ahead with his party’s Hindu nationalist agenda, raising tensions and sparking nationwide protests.

The worst shutdown has been in Kashmir, where after intermittent closures in the first half of the year, the internet has been cut off since Aug. 5 following the government’s decision to revoke the special autonomous status of the country’s only Muslim-majority state, a study said. The prologued closure was criticized by India’s highest court, which ruled Friday that the “limitless” internet shutdown enforced by the government for the last five months was illegal and asked that it be reviewed.

India imposed more internet restrictions than any other large democracy, according to the Cost of Internet Shutdowns 2019 report released by Top10VPN, a U.K.-based digital privacy and security research group. The South Asian nation recorded the third-highest losses after Iraq and Sudan, which lost $2.31 billion and $1.86 billion respectively to disruptions. Worldwide internet restrictions caused losses worth $8.05 billion, the report said.

The cost of internet blackouts was calculated using indicators from groups including the World Bank, International Telecommunication Union, and the Delhi-based Software Freedom Law Center. It includes social media shutdowns in its calculations.

India’s ministry of information and technology didn’t respond to an email seeking a response to the report’s findings.

‘Conservative Estimates’

Through 2019, India shut access to the internet for over 4,000 hours. The report added shutdowns in India were often narrowly targeted, down to the level of blocking city districts for a few hours to allow security forces to restore order. Many of these incidents were not included in the report.

“These are conservative estimates,” said Simon Migliano, head of research at U.K.-based Top10VPN. “Internet shutdowns are increasing and it shows a damaging trend.”

India’s other major internet disruptions coincided with two moves by the government that affect India’s Muslim minority. The first disruption took place in November in the states of Uttar Pradesh and Rajasthan after the Supreme Court handed a victory to Hindu groups over Muslim petitioners in a long-simmering dispute over a plot of land.

There were further disruptions in December when protests erupted against the introduction of a religion-based law that allows undocumented migrants of all faiths except Islam from neighbouring countries to seek Indian citizenship. The government enforced shutdowns across Uttar Pradesh and some Northeastern states in order to quell the protests, the report said.

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