Daily News - Thursday, 8 August 2024
Lok Sabha clears Finance Bill (mint)
The Lok Sabha approved the FY25 tax proposals in the Union budget, including amendments by Finance Minister Nirmala Sitharaman that restore the inflation adjustment benefit for property sale gains. Sitharaman highlighted the government's approach of broad-based consultations to ensure the budget reflects the aspirations of the common man. She introduced a new option allowing taxpayers to calculate capital gains tax on land or buildings under both the old and new schemes, with the lower tax amount payable, aiming to simplify the capital gains tax structure and create uniformity in asset class treatment.
Goyal Proposes Preferential Trade for Bimstec as FTA Talks Remain Held Up (The Economic Times)
At the CII BIMSTEC Business Summit 2024, India proposed a preferential trade agreement (PTA) among BIMSTEC member countries, suggesting it as a more feasible alternative to the stalled free trade agreement (FTA) negotiations. Commerce Minister Piyush Goyal emphasized the need to reassess the potential FTA, citing 21 rounds of inconclusive talks since 2004, and urged member nations to consider local currency trade to address trade imbalances. He also called for improvements in ease of doing business within the bloc, including better customs integration, reducing trade barriers, and enhancing cooperation among startups and entrepreneurs.
India Needs to open Economy Further, Privatise Banks: Panagariya (The Economic Times)
Arvind Panagariya, chairman of the 16th Finance Commission, emphasized that India needs to further open its economy, privatize banks, and implement factor market reforms, particularly in land, labour, and capital, to achieve growth beyond 6.5-7%. He highlighted the necessity of bank privatization, noting that previous cleanups led to growth spurts, and stressed that public sector dominance in manufacturing is inefficiently using capital. Panagariya also called for easier land acquisition and the implementation of labour codes, suggesting that even partial adoption by states could significantly boost economic growth.
Portal to Expedite Visa for China Experts Put in Place (The Economic Times)
India has launched a new portal to expedite visa processing for Chinese technicians and experts needed by companies participating in the Production-Linked Incentive (PLI) scheme, addressing delays that have impacted domestic manufacturing firms. The portal, which has been operational since last week, is designed to streamline and fast-track business visas for these professionals, typically required for machine installation, repair, and worker training. This initiative follows concerns over prolonged visa processing times and is part of broader efforts to balance border security with economic collaboration, especially in sectors covered by the ₹1.97 lakh-crore PLI scheme.
No forex-related LTCG tax benefit for non-residents (Financial Express)
The government clarified that non-resident taxpayers will not receive benefits for exchange rate fluctuations when paying the new 12.5% long-term capital gains (LTCG) tax on the sale of unlisted shares, addressing a previous ambiguity in the Finance Bill 2024. Before the budget, non-residents were taxed at 10% on these gains without indexation or foreign exchange relief, and the clarification now means foreign exchange gains will also be taxed at 12.5%. This move aligns the treatment of capital gains taxation between residents and non-residents.
