Aanchal Magazine

The Centre has said that the decision does not bring any change to the already existing framework. But some Opposition-ruled states have stated that it would give them greater space to take decisions in the federal structure.

Another round of repo rate hike is expected in June, with its quantum being as high as 40 basis points.

India's WPI Inflation April 2022: This is the highest WPI print in the 2011-12 series.

Retail inflation has persisted above the Reserve Bank of India’s (RBI’s) inflation target for the fourth straight month, with price levels rising to an 8-year high of 8.38 per cent in rural areas in April while urban inflation was at a 18-month high of 7.09 per cent.

The rupee has depreciated by 4.18 per cent since the beginning of the year and closed Friday’s trading session at 77.44 against the greenback.

High price levels of fuel and food items, especially of vegetables, spices and oils/fats, along with household services, contributed to the sharp rise in inflation, a level which is seen as being partly responsible for preempting the unscheduled repo rate hike of 40 basis points by the RBI last week.

The mandatory condition of obtaining PAN for deposit and withdrawals would help the government in tracing the movement of cash in the financial system.

Most of the risks to inflation are seen emerging from the crisis due to the Ukraine-Russia war. The repo rate – the rate at which the RBI lends to banks – was 5.15 per cent in February 2020 before the pandemic.

Geopolitical tensions, heat wave impacting food prices, especially of wheat, along with an overall increase in transportation costs due to fuel price hike have added to the surge in inflation rate, which had risen to a 17-month high of 6.95 per cent in March.

According to the top court’s judgment, the assessing officer will, within 30 days from May 4, provide the respective assesses the information and all relevant material which was relied upon to send the income tax recovery notice to them.

Casinos, online gaming and race courses could soon attract a GST of 28 per cent. West Bengal Finance Minister Chandrima Bhattacharya said there is consensus among states that (on) these three, the highest rate of tax should be levied.

The GoM will then finalise the method for valuation of these services. At present, services of casino, horse racing and online gaming attract 18 per cent GST,

The Prime Minister has noted that certain states have not reduced VAT; states have attributed rising fuel prices to central taxes. How is fuel taxed, and how are collections shared between the Centre and states?

The reluctance to reduce excise duty and VAT on fuel stems from the fact that it constitutes an important source of revenue for both the Union government and the states.

The CII chief also said that the Russia-Ukraine war has presented Indian steel exporters with an opportunity in the light of “space vacated by Russia and Ukraine” in the sector.

Many MSMEs have also done well but there are many who have struggled. So you need to have a sector-specific approach rather than a MSME approach in general because not all of them are doing badly.

India has so far committed $1.9 billion to Sri Lanka in the form of credits for essential commodities and fuel, and also in loans and currency swaps.

Trend reversal with CPI inflation converging towards WPI inflation worries policymakers

The runaway prices have not adversely impacted political outcomes, given the results of recent state elections. What’s worrying the government's economic managers is the rise in wages due to rising food prices, which will have a spill-over effect on wholesale inflation.

This marks the third successive month when retail inflation, based on the Consumer Price Index (Combined), stayed above the upper tolerance limit of the medium-term inflation target of 6 per cent set by the Reserve Bank of India (RBI).

The concessional corporate tax rate announced by the Union government in September 2019 saw two out of every five new domestic manufacturing companies incorporated in 2019-20 (April-March) opting for the reduced 15 per cent tax rate.

These companies, numbering 1,244 in 2019-20, cumulatively accounted for just Rs 35.13 crore in total income, government data showed.

The Netherlands will be co-hosting a 3-day UN conference on March 22, 2023 for taking action on sustainable water management with Tajikistan.

The war in Ukraine has put dialogue around energy dependence in a faster transition mode, said the Netherlands’ Climate Envoy Prince Jaime de Bourbon de Parme, adding there’s potential for the Netherlands and India to explore trade in green hydrogen.