Finance Minister Nirmala Sitharaman Press Meet Highlights: In a much needed relief to the FPIs, the government on Friday withdrew the enhanced surcharge on foreign investors. It comes along with a host of other measures related with angel tax, bank recapitalisation and income tax notices. The government has also announced that no angel tax would be imposed on startups and their investors if registered with the DPIIT. From October 1, all income-tax notices will be sent only via a centralised computer system, and will be disposed off within three months. “No taxpayer will have anything to do with any notice three months after the date of the issue,” Finance Minister Nirmala Sitharaman said in the press briefing. The government also announced that it will release upfront the Rs 70,000 crore of funds under bank recap plan announced earlier in the budget.
Nirmala Sitharaman Economy Booster Highlights: FPI surcharge goes, income tax notices get computerised
FM Nirmala Sitharaman Press Conference Today Highlights: In a much needed relief to the FPIs, the government on Friday withdrew the enhanced surcharge on foreign investors.
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This article was first uploaded on August twenty-three, twenty nineteen, at thirteen minutes past five in the evening.
This is going to have a significant impact on the sentiment in the economy, says Shamika Ravi, Member, Prime Minister's Economic Advisory Council. Finance Minister has acted as the CFO in-charge, and the gamut of reforms announced add up.
Finance Minister Nirmala Sitharaman has just made it easier to carry on doing business, says Nandita Parker, Managing Partner, Karma Capital Management. FinMin's press conference continues to get positive response.
Nirmala Sitharaman's economic booster press conference gets a thumbs up from another critic. These are well calibrated policy announcements, such as what these marginal tax rates would do, etc, says Shamika Ravi, Member, Prime Minister's Economic Advisory Council. There has been attempt at significant credit expansion.
By and large they have tried to focus on things which are economically very important, says Arvind Virmani, former CEA. It's the hallmark of a good economic policy, he adds. There has been an efficient response to the concerns raised.
The message we were giving to the government was that you have to listen to the people on the ground. The press conference is an ample proof that the government has listened to the suggestions well, says Former Chief Economic Advisor Arvind Virmani. The government is refocussing on the economy, says he.
It's a very big thing. This kind of detailed response is very welcome, says Vikram Kirloskar, President, CII.
Niramala Sitharaman's economy booster package seems to be getting positive response. "We tend to blame the government for all our woes. Not correct. Yes the government needs to do more to stimulate demand, but we India inc. need to change -- innovate more, have sharper cost efficiencies and prepare ourselves better for global volatility and changing business models," says Harsh Goenka, Chairman, RPG Enterprises.
BSIV vehicles bought before 31st March 2020 to remain operational for their full period of registration, said Finance Minister.
Inter-Ministerial Task Force is being formed by DEA to finalise pipeline through which various infra projects will get funded; projects to be monitored actively to accelerate capital expenditure and investment in the economy, said Sitharaman.
Withdrawing of super-rich tax on FPIs, domestic investors to cost exchequer Rs 1,400 crore, says Revenue Secretary.
Withdrawing of super-rich tax on FPIs, domestic investors to cost exchequer Rs 1,400 crore, says Revenue Secretary.
"Withdrawal of enhanced surcharge on FPI, is a big positive for Indian markets as it could reverse the outflows seen since post budget. It should also help INR appreciation. Overall a good sentiment booster for Indian economy," said Rusmik Oza, Head of Fundamental Research, Kotak securities.
Inter-Ministerial Task Force is being formed by DEA to finalise pipeline through which various infra projects will get funded; projects to be monitored actively to accelerate capital expenditure and investment in the economy, said Sitharaman,
The government also announced formation of a new task force on Rs 100 lkah crore infrastructure push in the coming five years.
In order to reduce harassment and bring in greater efficiency, PSBs to return return of loan documents within 15 days of loan closure, said Nirmala Sitharaman.
Higher vehicle registration fee deferred till June, 2020. The govt departments told top replace old vehicles, says FM.
Government goes all out to boost purchase of houses, vehicles and consumption goods; approves additional liquidity to support HFCs by NHB taking the total to Rs 30k crore.
Government vows to crack down on delayed payment from CPSEs, says Nirmala Sitharaman.
Banks have agreed to link repo rate to interest rate and this will cause reduced EMIs for housing and vehicle loans and other retail loans,s aid Finance Minister.
Broad basing and deepening bond markets in India a credit enhancement organization for infra and housing projects. Further development of Credit Default Swap markets and alignment of bond market regulations with international best practices.
All pending GST refunds, due to small and medium enterprises, will be paid in 30 days. These refunds will be processed in 30 days irrespective of their pending timeline. Not only this, all future GST refunds will be settled in 60 days for SMEs, so that small businesses do not have to worry about their money being stuck somewhere.
All pending GST refunds due to MSMEs will be paid within 30 days from today, says Nirmala Sitharaman. All the GST refiunds in future will be resolved in 60 days from the day they arise.
The banks will launch repo rate or external benchmark linked loan products, said Finance Minister Nirmala Sitharaman during press briefing.
The banks have been asked by the government to make home and auto loans cheaper, said Finance Minister Nirmala Sitharaman.
The government also released the Rs 70,000 crore of funds under recap plan announced in the budget upfront.
From October 1, all income-tax notices will be sent only via a centralised computer system, and will be disposed off within three months. "No taxpayer will have anything to do with any notice three months after the date of the issue," Finance Minister says.
WITHDRAWN! Nirmala Sitharaman says the government has decided to withdraw the enhanced surcharge on FPI investments, as was proposed in the Budget. "Pre-Budget position is restored," she says. The same goes for domestic institutional investments.
CSR violations won't be criminal offence. MCA will review sections in companies act on CSR violations, says Sitharaman.
No prosecution route for company executives for failing to meet CSR requirements. The onerous CSR requirements floated earlier had spooked investors and businesses alike about serving jail time for failing to meet the new criteria.
Modi government wants resolution not prosecution, says Finance Minister.
"This govt, even from 2014, has kept reform at top of agenda. It is an ongoing process. Reform is a continuous process. Whether it is self-certification or environment clearance, we have not lost that momentum. About labour, taxation reforms, we have kept that momentum," says Nirmala Sitharaman
PM said " we respect wealth creators." Budget was presented in this spirit, she added.
Action against anyone who games the GSTN system: Sitharaman to meet officials on Sunday morning to review GSTN system and assess if someone is trying to 'game the system' or making manual tweaks.
Government is responsive to the feedback from the ground, Sitharaman says. Pre-filling of Income Tax returns will significantly increase the convenience for taxpayers. Similarly, faceless assessment will cut the chances of an "overenthusiastic" tax officer harassing the tax assessees.
US, Germany seen inverted yields indicating recession, says Finance Minister Nirmala Sitharaman during press briefing.
Reform is a continuous agenda for the government and it will keep on going, says Sitharaman.
Finance Minister Nirmala Sitharaman says reforms for the NDA government are a continuous process. "We have taken it for granted," she says.
Currently projected gloabl GDP growth is 3.2 per cent and may be revised downwards in the coming days, says Nirmala Sitharaman.
US, Germany, advanced economies, emerging economies -- all under stress, says Nirmala Sitharaman, ahead of her presentation. It looks like an attempt to put India's economic position in the global perpective.
Globally the growth has remained very weak. India still very much better than economies such as US and Germany.