1. On GST Eve, Govt Tells India Inc Not to Hike Prices
Finance Minister Arun Jaitley met industry representatives on Thursday, a day before the roll-out of the goods and services tax (GST), and urged them against increasing prices.
Executives of Hindustan Unilever, Procter & Gamble, Airtel, DLF, Amazon, Grofers, Wipro, Mondelez, Johnson & Johnson and Liberty, along with industry chamber members, met Jaitley in North Block late in the evening. The FM took stock of industry preparedness for the GST and pitched for price reductions after the tax was imposed.
“The finance minister asked the industry representatives to pass on the benefit of the GST to the end user. The broad message was that the GST should not be inflationary and that prices should either remain stable or come down,” said an official on condition of anonymity.
Source: Business Standard
2. IndiGo Eyeing Air India’s International Operations
IndiGo, India’s biggest airline, expressed unsolicited interest in Air India Ltd., a day after the Union Cabinet approved a proposal to divest stake in the debt-laden national carrier.
In a letter to the government that was also sent to the stock exchanges, IndiGo expressed its interest in acquiring the international airline operations of Air India and Air India Express. The airline, in its letter, also said that it is “equally interested” in acquiring the entire airline operations of Air India and Air India Express.
Air India’s international operations is one of its strong points as it carries the most number of passengers in and out of India among all domestic airlines. “It is time for India to take back its fair share of international traffic”, read IndiGo’s letter.
Source: BloombergQuint
3. Hope Anti-Profiteering Law Won't Have to be Used: FM Arun Jaitley
Finance Minister Arun Jaitley has expressed the hope that the government will not have to use the anti-profiteering provision of the goods and services tax (GST) and said prices should drop overall under the new regime to be put in place on 1 July.
Jaitley said in an interview that there may be some challenges initially, but expects companies to get accustomed to GST quickly, calling for patience as the reform is rolled out.
"On an overall basis, the net weighted average of the whole consumption basket is less than what it was," he said. "So, in terms of weighted average it should come down."
India is one of the few countries that has shown it has the ability to carry out structural reforms, Jaitley said, citing insolvency laws, overseas investment reforms and the Air India disinvestment plan.
Source: The Economic Times
4. GST Roll-Out: Traders Greet Tax With Nationwide Protests, Strike on Friday
Even as the Prime Minister Narendra Modi-led government at the Centre rolls out the goods and services tax (GST) on Friday midnight, it will be greeted by protests and strikes across the country.
The Bharatiya Udyog Vyapar Mandal, which claims to represent 17,000 traders’ associations and small and medium enterprises, said it would observe a daylong Bharat Bandh (countrywide strike) on Friday, demanding changes in the GST regime.
Over the past week, its affiliate associations, especially in the textile sector, have been protesting against some provisions in the GST. Traders, small and medium entrepreneurs, and farmers have planned a series of protests through July and August.
Source: Business Standard
5. Govt Hikes GST Rate on Construction Sector From 12 to 18 Percent
The landmark tax reform measure that will unify the 2 trillion dollar Indian economy and 1.3 billion people into a single market for the first time ever – goods and services tax (GST) – will roll out from 1 July.
The process for the same is ongoing and the government on Thursday hiked the GST rate for the construction sector to 18 percent from 12 percent, but removed land value from the computation of tax liability, as per a report by PTI.
The Central Board of Excise and Customs (CBEC) tweaked the tax rate and the mode for calculation while notifying the tax rates for central GST, IGST and Union Territory GST.
Source: Financial Express
6. 1,700 May Lose Jobs as 43 Out of 55 McDonald’s Shut Down in Delhi
Global fastfood chain McDonald’s will be shutting down 43 out of the 55 outlets in Delhi from Thursday, due to the expiration of its licences.
In an official statement, it said:
The Board of Connaught Plaza Restaurants Private Limited (or “CPRL”, McDonald’s licensee in North and East India) is working to obtain the required licences. Pending this, CPRL is temporarily suspending the operations of the affected restaurants.
According to ET, this shutdown will affect the livelihood of as many as 1,700 of its employees.
Read the full story on The Quint.
7. Indians’ Money in Swiss Banks Hit Record Low of Rs 4,500 Cr in 2016
Money parked by Indians in Switzerland’s banks nearly halved to 676 Swiss francs (CHF), about Rs 4,500 crore in 2016 to hit a record low amid a continuing clampdown on the suspected black money stashed behind their famed secrecy walls.
In comparison, the total funds held by all foreign clients of Swiss banks somewhat rose to CHF 1.42 trillion or about Rs 96 lakh crore (from CHF 1.41 trillion a year ago).
The total funds held by Indians directly with Swiss banks stood at CHF 664.8 million at the end of 2016, while the same held through fiduciaries was nearly CHF 11 million, according to the latest data published on Thursday by the country’s central banking authority SNB (Swiss National Bank).
Source: PTI
8. Reliance Jio Launches 25,000 km-Long Submarine Cable System
Reliance Jio Infocomm Ltd on Wednesday announced the launch of the Asia-Africa-Europe (AAE-1) submarine cable system.
A submarine cable system consists of telecom and internet cables on the seabed between land-based stations. These carry telecommunication and data signals across stretches of oceans.
“AAE-1, the longest 100 Gbps (gigabits per second) technology-based submarine system, will stretch over 25,000 km from Marseille, France, to Hong Kong, with 21 cable landings across Asia and Europe,” Reliance Jio said in a press statement.
Source: Livemint
9. ADB to Invest $10 billion Over Five Years in Indian Infrastructure
In a boost to India’s infrastructure development programme, the Asian Development Bank (ADB) on Thursday committed to investing 10 billion dollars in the country over the next five years.
The investment, part of ADB’s new strategy for India, was announced by the multilateral agency’s president Takehiko Nakao in New Delhi. The bank’s focus is on lifting the economic performance of low-income states and developing economic corridors, particularly along the coasts.
While 5 billion dollars will be used for creating infrastructure in states such as Uttar Pradesh (UP), Bihar, Jharkhand, Odisha, and Chhattisgarh, the balance 5 billion dollars will be used for developing the 2,500 km East Coast Economic Corridor, which will ultimately extend from Kolkata to Tuticorin in Tamil Nadu. ADB had last year approved 631 million dollars to develop the 800-km industrial corridor between Visakhapatnam and Chennai.
Source: Livemint
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