PHDCCI chief Sanjay Aggarwal wants highest income tax rate cut to 25%

wayne


PHD Chamber of Commerce and Industry’s (PHDCCI’s) new president Sanjay Aggarwal on Sunday said the next Budget should lower the maximum (I-T) rate to around 25 per cent from the current 30 per cent plus surcharges.


“In the current scenario, there is a need to increase the disposable income of people by reforming the direct tax structure. The maximum personal rate should be around 25 per cent to increase the personal disposable income. This will boost demand in the economy,” Aggarwal, who is chairman and chief executive officer (CEO) of Paramount Cables, said.


His comment was in contrast to economist Joseph Stiglitz’s, who wanted the rich to be taxed more under the current circumstances.




Currently, an annual income of over Rs 10 lakh attracts 30 per cent tax, besides education and health cess of four per cent under the old regime. If an assessee chooses the new scheme of less exemptions, annual income of over Rs 15 lakh attracts 30 per cent tax. Besides, there are surcharges if annual income is above Rs 50 lakh. These go up to 37 per cent of the tax rate

Is Bangladesh economy really doing better than India? Former CEA doesn’t think so

wayne


On ‘more appropriate’ economic metric, has not surpassed India and is unlikely to be in future, former chief economic adviser said on Saturday, asserting that GDP per capita is an estimate for one indicator of the average standard of welfare in a country.


Congress leader Rahul Gandhi had taken a dig at the government over growth projections showing closing in on India in terms of per capita GDP this year and described it as a “solid achievement” of six years of the BJP’s “hate-filled cultural nationalism”.



Government sources had emphasised that India’s Gross Domestic Product (GDP) in terms of purchasing power parity was 11 times more than that of in 2019.


“The India-vs.-Bangladesh GDP per capita comparison (post WEO) has sparked anxiety & acrimony. But wrong numbers being compared…


“NO, on more appropriate metric, India has not been surpassed and, according to IMF, unlikely to be in near future,” Subramanian said in a series of tweets.


He said all the focus has been on comparisons based on GDP measured at current, market exchange rates and this yields “conclusion”

Rural consumption better placed during Covid-19 pandemic, shows data

wayne

An EcoScope report of Motilal Oswal Financial Services says that while urban consumption declined 18 per cent year-on-year

Topics
Rural consumption | Coronavirus


While the is holding on to its previous year level, the urban consumption has declined massively in the first two months of the second quarter of this fiscal year.


An EcoScope report of Motilal Oswal Financial Services says that while urban consumption declined 18 per cent year-on-year, was almost flat (+0.1 per cent YoY) in July-August of 2020-21.




Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need

PM Narendra Modi calls for scaling up of Covid-19 testing, sero surveys

wayne


Calling for continued vigilance and a high state of preparedness against the Covid-19 pandemic, Prime Minister on Thursday directed health authorities to scale up Covid-19 testing and sero-surveys.


He said the facility to get tested regularly and speedily at a low cost must be available to all at the earliest.



Chairing a review meeting of the research and vaccine deployment ecosystem against the pandemic, the prime minister underscored the need for continuous and rigorous scientific testing and validation of traditional medicine treatments. He appreciated the efforts of the Ministry of AYUSH for conducting evidence-based research and providing reliable solutions in this difficult time, an official statement said.


“The prime minister reiterated the country’s resolve to provide cost-effective, easily available and scalable solutions for testing, vaccine and medication, not only for India but for the entire world,” it said.


At the meeting, also attended by Union Health Minister Harsh Vardhan, NITI Aayog Member (Health), Principal Scientific Advisor, senior scientists and other officials, Modi called for continued vigilance and a high state of preparedness against the pandemic.


Modi also appreciated efforts made by Indian vaccine

Rajiv Kumar hits backs at Subramanian for criticising Aatmanirbhar Bharat

wayne

NITI Aayog Vice-Chairman Rajiv Kumar on Wednesday hit back at former chief economic advisor (CEA) Arvind Subramanian for criticising the government’s Aatmanirbhar Bharat initiative, saying it effectively started during Subramanian’s tenure as CEA.


Subramanian, in a research paper co-authored with Pennsylvania State University professor Shoumitro Chatterjee, has said India should resist the misleading allure of domestic market and zealously boost exports.



“Very surprised to read @arvindsubraman’s co-authored piece this morning criticising #AtmanirbharBharat. It effectively started during his tenure as chief economic advisor which as he writes saw the highest increase in import tariffs in 2018 to nearly 18 per cent,” Kumar said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

GST shortfall: Govt allows 20 states to borrow Rs 69,000 crore more

wayne


A day after the goods and services tax (GST) Council meeting ended in a deadlock, the Centre on Tuesday allowed 20 states to borrow an additional Rs 68,825 crore through the market to make up for the compensation shortfall amid inadequate cess collection.


Meanwhile, dissenting states like Kerala, West Bengal, Punjab and Chhattisgarh said they are exploring legal options, including moving the Supreme Court, to counter the Centre’s move.



Twenty states had picked the finance ministry’s first option of raising up to Rs 1.1 trillion to make up for revenue loss estimated on account of GST implementation alone, but not for losses due to the pandemic. Under this option, the entire principle and the interest will be repaid through compensation cess collection, which has been extended beyond June 2022.


“Additional borrowing permission has been granted at 0.50 per cent of the gross state domestic product (GSDP) to those states that have opted for Option 1 out of the two options suggested by the Ministry of Finance to meet the shortfall,” said the official release.



The 20 states are Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa,

Subscribe Now