Modi govt withdraws customs exemption on 74 drugs, prices to rise

February 6, 2016

New Delhi, Feb 6: As many as 74 drugs, including life saving ones used for treating cancer and HIV, will see sharp rise in prices as the government has withdrawn customs duty exemption on their imports.

modiThe Central Board of Excise and Customs (CBEC) last week issued a notification withdrawing exemption of levy of basic customs duty on as many as 74 drugs.

The medicines on which customs duty will now be imposed include the ones used for treating kidney stones, cancer chemotherapy and radiotherapy, life-threatening heart rhythm disorders, diabetes, Parkinson's disease, bone diseases, antibiotic to treat infections.

Besides, drugs used for bacterial infections, leukemia, anesthetic medication, human immunodeficiency virus (HIV) or hepatitis B virus cells, allergies, arthritis, lupus and ulcerative colitis might also see spurt in prices.

Also drugs used in blood dilating medicine or for treating menopause, glaucoma, anogenital warts, poisoning by a chemical or pesticide, growth failure in children and adults who lack natural growth hormone would also attract customs duty.

"The withdrawal of exemption from basic customs duty for certain drugs and medicines including life-saving drugs is intended to provide protection to the domestic manufacturing industry and enhance the attractiveness of make in India initiative," KPMG India Partner and Head of Indirect Tax Sachin Menon said.

"An increase has also been made in the customs duty rates of certain life saving drugs such as abciximab, anti-rabies immunoglobin, FSH, procarbazine and saquinavir to 35 per cent," Deloitte in India Senior Director MS Mani said.

These changes signify the intention of the government to promote domestic manufacture of these items as imports would now become more expensive, Mani said.

Menon said the move seems to be in line with the government's objective to rationalise the duty exemptions.

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News Network
May 19,2020

New Delhi, May 19: In a fresh blow to saffronite journalist Arnab Goswami, the Supreme Court of India today rejected his plea seeking transfer of the investigation of a case, filed against him for defaming Congress interim president Sonia Gandhi, to the CBI. The court also refused to quash the FIRs filed against him.

Goswami, editor-in-chief of Republic TV, has been booked in connection with a TV show on the gathering of migrants outside Bandra railway station on April 14. This apart, multiple FIRs have been filed against him for his show on Palghar lynching. In that show, he had posed certain questions on the incident to Congress President Sonia Gandhi, following which Congress workers lodged complaints against him in various states.

Extending Goswami’s interim protection from arrest by three weeks, the Supreme Court said, “Right of a journalist under 19 1 (a) higher…Free citizens can’t exist if news media can’t speak.”

During the earlier hearing, Senior Advocate Harish Salve, appearing for Goswami, had urged the court to transfer the probe to an agency like CBI. He said the “nature of the” second FIR against Goswami over a show on the migrant gathering outside Bandra station on April 14 “shows that it’s arm-twisting tactic”. 

“They are trying to stifle an unpleasant voice. This is a political party targeting a journalist. All complainants are members of one political party. They have a problem with the government. They want to teach this journalist a lesson,” he added.

Objecting to Salve’s plea to transfer the case to the CBI, Maharashtra government counsel, Senior Advocate Kapil Sibal, had said, “CBI investigation will go into your hands”. 

Sibal denied that Goswami was being harassed and said he was only asked relevant questions. He said Goswami should “stop this communal violence and communal mongering”.

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News Network
April 9,2020

New Delhi, Apr 9: With an increase of 540 positive COVID-19 cases reported in the last 24 hours, India's tally of coronavirus cases has risen to 5,734, said the Ministry of Health and Family Welfare on Thursday.

Out of the 5,734 cases; 5,095 are active COVID-19 cases and 472 cases have been recovered/discharged and one case migrated.
The death toll has also risen to 166 after 17 new deaths were reported in the last 24 hours.

Maharashtra is the worst-hit state 1,135 positive cases so far and while Tamil Nadu is second with 738 positive cases. Delhi's tally has risen to 669 cases. 

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News Network
March 4,2020

New Delhi, Mar 4: The government on Wednesday permitted NRIs to own up to 100 per cent stake in disinvestment-bound Air India.

The decision comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier.

Union minister Prakash Javadekar said the Cabinet has approved allowing Non-Residents Indians (NRIs) to hold up to 100 per cent stake in Air India.

Allowing 100 per cent investment by Non-Resident Indians (NRIs) in the carrier would also not be in violation of SOEC norms. NRI investments would be treated as domestic investments.

Under the Substantial Ownership and Effective Control (SOEC) framework, which is followed in the airline industry globally, a carrier that flies overseas from a particular country should be substantially owned by that country's government or its nationals.

Currently, NRIs can acquire only 49 per cent in Air India. Foreign Direct Investment (FDI) in the airline is also 49 per cent through the government approval route.

As per the existing norms, 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines.

In the case of scheduled airlines, 49 per cent FDI is permitted through automatic approval route and any such investment beyond that level requires government nod.

On January 27, the government came out witha Preliminary Information Memorandum (PIM) for Air India disinvestment. It has proposed selling 100 per cent stake in Air India along with budget airline Air India Express and the national carrier's 50 per cent stake in AISATS, an equal joint venture with Singapore Airlines.

Under the latest disinvestment plan, the successful bidder would have to take over only debt worth Rs 23,286.5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction.

This is the second attempt by the government in as many years to divest Air India, which has been in the red for long.

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