It is apparent that the government is trying to fill its pockets through all means possible so that it can continue to indulge in wasteful expenditure. Its philosophy seems to be tax till you get the axe!
The government is thinking of making eating of ice cream at service parlours subject to service tax! Why? Because ice cream parlours are air-conditioned and hence subject to service tax! The question is whether ice cream is a product or a service! To my mind, ice cream is a manufactured product and is subject to excise duty once it leaves the factory. Because it is a product, it will be subject to value added tax (VAT) as per the respective state laws. Now an additional dose of tax—service tax @12.36% over and above the two taxes is being proposed. This will lead to taxation in excess of 35% on ice cream that would be eaten at an ice-cream parlour… it just makes me want to scream.
The basics of product vis-à-vis service is being brought into question by fuddy-duddy bureaucrats who want to be in the good books of the finance ministry by whatever means possible and the citizenry at large be damned, I guess.
It is apparent that a useless government is trying to fill its pockets through all means possible to enhance its coffers so that it can continue to indulge in wasteful expenditure. The more money they take through direct and indirect taxes, the more would be available for siphoning off through the various ongoing scams.
This is going to kill the food industry completely. People have stopped going to beer bars and restaurants due to the high incidence of taxation. Now, they will stop going to ice-cream parlours, which are basically teenage and family evening-out hot spots! The government is telling people buy your stuff, take it home and eat. DO NOT EAT OUT. It is becoming a complete killjoy of a government. Its philosophy seems to be tax till you get the axe! Looks like the voters need to sharpen their axes!
The growth rate is expected to accelerate in 2014 as slower inflation provides some scope for monetary easing that could boost investment and consumption, ADB said in its ‘Asian Development Outlook Supplement’
Slow progress of economic reforms is expected to pull down India’s growth to 5.8% in 2013 from 6% projected earlier, an Asian Development Bank (ADB) report said on Tuesday.
“In India, slow progress in pushing through the reforms needed to ease business bottlenecks means growth is likely to be 5.8% this year, slower than the previously forecast 6%,” the report ‘Asian Development Outlook Supplement’ said.
Meanwhile, finance minister P Chidambaram in Jaipur said on Tuesday that India was likely to clock over 6% growth in the financial year 2013-14, in the backdrop of government taking host of steps to boost sagging economy.
India’s growth fell to a decade’s low of 5% in fiscal 2012-13.
ADB in April had projected a growth rate of 6% for India in 2013.
It further said the projected growth at 5.8% in 2013 will be “higher than the 5% posted in 2012, growth remains constrained by supply-side bottlenecks, as reflected in the continued slowdown in fixed capital formation, weakness in the industrial sector, and sluggish progress in pushing through badly needed structural reforms.”
The growth rate, it added, is expected to accelerate in 2014 as slower inflation provides some scope for monetary easing that could boost investment and consumption.
“Growth will be further boosted by pre-election spending, and the pickup in US growth will support Indian tech companies and related service sectors”, ADB said, adding, the US was likely to grow at 2% in 2013 and 2.6% in 2014.
Elsewhere in South Asia, it said, Sri Lanka will continue to grow strongly, while other parts of the region will see softer-than-anticipated growth.
South Asia, it said, is expected to grow by 5.6% in 2013 and 6.2% in the following year.
As regards China, ADB said, the country was likely to see 7.7% growth this year and 7.5% in 2014 after growth of 7.8% in 2012.
Under the measures announced, RBI raised lending rates to commercial banks by 2% to 10.25% making the loans costlier
In a move to stem the continuing fall of rupee, the Reserve Bank of India (RBI) late Monday came out with a clutch of measures including hiking the lending rates for banks and sucking up of Rs12,000 crore, to make the currency dearer.
The measures came after high level meetings between the prime minister and the finance minister followed by discussions with RBI governor D Subbarao who was called to Delhi as the rupee lost 33 paise to reach 59.89 per dollar after touching over 61-levels last week.
Under the measures announced, RBI raised lending rates to commercial banks by 2% to 10.25% making the loans costlier.
The RBI will conduct sale of Government of India Securities to suck up Rs12,000 crore on 18th July from the market, in a move to make rupee dearer.