Foreign Media On Kerala's 'Fat Tax' And The Global Experience

July 14, 2016

Kerala: The opening salvos of the fight against fat have been fired in the southern Indian state of Kerala.

KeralaOn Friday, the state government announced a 14.5 percent "fat tax" on burgers, pizzas, donuts, tacos, sandwiches and pasta served in branded restaurants.

With Kerala having the second highest rate of obesity in India, the new tax is a "preventive measure," the state's finance minister Thomas Isaac told the BBC.

"People are eating a lot of junk food and rejecting traditional food," Isaac said.

The tax will be levied in fast food chains like McDonald's, Burger King, Pizza Hut and KFC. It's the first state in India to impose such a tax.

"The fight against fat has just begun," Isaac told the BBC.

Already, some are questioning the efficacy of the tax.

"Why just burgers and fries, Indian food is also laden with empty calories, which give no concrete nutrition - take for instance vada pao or bhajiyas, butter chicken, dal makhni or paneer makhni or even ras malai, barfi and other Indian sweets. So really speaking, the fat tax should cover a lot of foods," Zainab Gulamhusein, a clinical dietician, told the Times of India.

Others say that the tax is unfairly singling out multinational fast food chains.

"A lot of local food is more fatty and unhealthy. I don't think the tax is a bad thing but it has to be comprehensive and acceptable to all the stakeholders," Isaac Alexander, a local cafe owner, told the BBC. "Otherwise it is discriminatory. Just because you serve pizza and burger doesn't mean other people are serving healthy food."

Indeed, the finance minister himself said that the tax is designed to target Kerala's elite, according to Shereen Bhan, managing editor of CNBC-TV18. The tax, the minister said, "targets the rich and not the common man."

Several other countries already have a fat tax in place.

Denmark introduced the world's first ever fat tax in 2011, when it implemented a tax on all foods with a saturated fat content above 2.3 percent. The government scrapped the tax in 2013, however, because it found that Danes were buying high fat foods across the border, and also that the tax only increased companies' administrative costs.

Hungary also has a fat tax, which it rolled out in 2011, taxing foods that are high in fat, salt and sugar. Mexico has a similar tax, as well as a one-peso-per-liter tax on sugary drinks like Coca Cola. And last month, Philadelphia became the first major American city with a soda tax.

Time will tell whether Kerala's fat tax curbs expanding waistlines. India also happens to have the third highest rate of obesity in the world, behind the U.S. and China, and other states in the country will look to Kerala to see if the fat tax will be worth imitating.

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Agencies
July 11,2020

Citing the current dismal aviation scenario, Air India is terminating the services of trainee cabin crew and cabin crew by withdrawing the offer of employment of those who were under training.

As per sources, the new crew and trainee pilots might reduce contracts from five years to one year. Sources said Air India is terminating 1,200 crew and employees who are more than 55-yr-old including 190 trainee pilots.

In a letter reviewed by IANS, Air India has informed an applicant who had been selected as cabin crew in August 2019 subject to successful completion of training.

"On behalf of Air India we would like to thank you for the interest shown by you in joining our organization. However, in view of the current aviation scenario, it would not be possible for Air India to impart any further training to you for engaging your services," the company said.

"In view of the above reasons, which are beyond the control of the company, it has been decided to discontinue your training arrangements and dispense with the offer of engagement with immediate effect. The bank guarantee furnished by you at the time of joining is returned herewith," Air India told the cabin crew.

"Once again on behalf of Air India we thank you for your cooperation and trust that you will appreciate the circumstances under which we are constrained to discontinue the training arrangements," the carrier said.

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News Network
January 27,2020

Mumbai, Jan 27: The country's largest car maker Maruti Suzuki India (MSI) on Monday said it has increased prices of select models by up to Rs 10,000 with immediate effect to offset the impact of rising input costs.

The price change varies across models and ranges up to 4.7 per cent (ex-showroom Delhi) and are effective from January, 27 2020, MSI said in a statement.

The price of entry level model Alto range has gone up in the range of Rs 9,000-6,000, S-Presso between Rs 1,500 to 8,000, WagonR between Rs 1,500 and Rs 4,000.

The company has also increased the price of its multi purpose vehicle Ertiga between Rs 4,000-10,000, Baleno by Rs 3,000 to 8,000 and XL6 by up to Rs 5,000 (all prices ex-showroom Delhi).

Currently, the company sells a range of vehicles starting from entry-level small car Alto to premium multi purpose vehicle XL6 with price ranging from Rs 2.89 lakh to Rs 11.47 lakh (ex-showroom Delhi).

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Agencies
July 13,2020

New Delhi, Jul 13: The Income Tax Department has facilitated a new functionality for banks and post offices to ascertain TDS applicability rates on cash withdrawal of above Rs 20 lakh in case of a non-filer of the income-tax return and that of above Rs 1 crore in case of a filer of the income-tax return.

In a statement, the Central Board of Direct Taxes (CBDT) said that now banks and post offices have to only enter the PAN of the person who is withdrawing cash for ascertaining the applicable rate of TDS.

So far, more than 53,000 verification requests have been executed successfully on this facility, a statement by the CBDT said.

"CBDT today said that this functionality available as 'Verification of applicability u/s 194N' on www.incometaxindiaefiling.gov.in since 1st July 2020, is also made available to the Banks through web-services so that the entire process can be automated and be linked to the Bank's internal core banking solution," it said.

On entering PAN by the bank or the post office, a message will be instantly displayed on the departmental utility: "TDS is deductible at the rate of 2 per cent if cash withdrawal exceeds Rs 1 crore", in case the person withdrawing cash is a filer of the income-tax return.

In case the person withdrawing cash is a non-filer of income tax return, the message shown would be: "TDS is deductible at the rate of 2 per cent if cash withdrawal exceeds Rs 20 lakh and at the rate of 5 per cent if it exceeds Rs 1 crore."

The CBDT said that the data on cash withdrawal indicated that huge amount of cash is withdrawn by the persons who have never filed income-tax returns.

To ensure filing of return by these persons and to keep track on cash withdrawals by the non-filers, and to curb black money, the Finance Act, 2020 with effect from July 1, 2020 further amended IT Act to lower threshold of cash withdrawal to Rs 20 lakh for the applicability of this TDS for the non-filers and also mandated TDS at the higher rate of 5 per cent on cash withdrawal exceeding Rs 1 crore by the non-filers.

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