Taxation
Reddy's diesel tax proposal 'highly flawed' says Praful Patel
The automobile industry has also opposed to the idea of diesel vehicles being taxed more, saying such a move will hurt the industry which is already reeling under a slump and future investments could also be hurt

New Delhi: Terming Oil Minister Jaipal Reddy's proposal of levying additional duty of up to Rs2.55 lakh on diesel cars as 'highly flawed', Heavy Industry Minister Praful Patel has written a letter to Finance Ministry saying such a move was 'unjustified', reports PTI.
 
In a letter to Finance Minister Pranab Mukherjee, Patel said: "This would amount to an unjustified abnormal hike in excise duty in case of small diesel cars which would definitely be resented by the consumers."
 
He was referring to Reddy's recommendation to the Finance Ministry suggesting a hike in excise duty on diesel vehicles ranging between Rs1.70 lakh and Rs2.55 lakh to make up for subsidised fuel being used in personal vehicles.
 
Patel further said: "I personally feel that the whole rationale of imposing a higher duty on a particular segment of the automotive sector, namely diesel cars, is highly flawed.."
 
He said additional taxes on diesel vehicles was not consistent with the ministry's policy and initiatives for developing the auto sector.
 
"What such a move is more likely to do, I feel, is to deflate the demand and growth of the diesel car segment also and this would lead to negative sales trajectory for the passenger car market as a whole," Patel said.
 
The Finance Ministry has been mulling over imposing more levy on diesel vehicles, a move which may discourage consumption of subsidised fuel by personal vehicle owners.
 
Asking Mukherjee not to impose any additional duty on diesel cars, he said if such a move was taken up "it would further lead to a slowdown in the growth of the auto sector in specific and the industrial growth rate in general which is a cause of concern for the government."
 
Earlier, Patel had twice taken up the issue with the Finance Minister.
 
The automobile industry is opposed to the idea of diesel vehicles being taxed more, saying such a move will hurt the industry which is already reeling under a slump and future investments could also be hurt.
 
Last week, the Department of Heavy Industry had submitted its report to the Finance Ministry opposing the proposal.
 
Besides, the Society of Indian Automobile Manufacturers (SIAM) submitted its report to the ministry stating production data of diesel cars.
 
Car sales in India grew at the slowest pace in seven months during May at 2.8% and stood at 1,63,229 units as against 1,58,809 units in the same month last year.
 
At present, excise duties on passenger cars range between 12% and 27% depending on engine size and length of the vehicle.

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COMMENTS

DILIP GANDHI

5 years ago

The regulator is making cable TV go digital which will benefit broadcasters but what about consumers’ interests, asks Dr Prakash Hebalkar !!!

If Govt. is not looking to the consumers' interest, who else will see the consumers' interest. It is a matter of sorrow that Govt., has to issue directive for minimum rent and for others tvs should be free and the same should not be chargeable.

Odisha starts transferring 1,500 acres to Posco

Odisha has already transferred 500 acres to Posco for setting up the proposed plant, which has an original capacity target of 12 mt, involving an investment of Rs52,000 crore

Mumbai: After seven years of delay, the Posco steel project will start rolling soon as Odisha has started transferring around 1,500 acres to the Korean steel major to set up an 8-million tonne plant in the first phase, Odisha Steel and Mines Minister Raghunath Mohanty said on Wednesday, reports PTI.

However, the minister did not specify a time frame under which the land transfer will be completed.

Meanwhile, the state will also soon sign a tri-partite agreement with Posco India and Posco to revive the memorandum of understanding (MoU) with the Korean steel major, which had lapsed since June 2010, the minister said.

"Transfer of around 1,500 acres is underway and we hope the tri-partite agreement with the steel company will be signed soon," Mohanty told PTI over phone from Bhubaneswar.

Earlier, after consulations with the government, Posco had decided to reduce its land requirement to 2,700 acres from over 4,000 acres.

The state has already transferred 500 acres to the company for setting up the proposed plant, which has an orignal capacity target of 12 mt, involving an investment of Rs52,000 crore, making it the sinlge largest FDI in the country.

In view of the land scarsity, the company has also decided to build an 8-mt plant in the first phase and scale it up to 12 mt later.

"They have agreed to build an 8 mt steel plant in the first phase, which will be done in two tranches of 4 mt each," Mohanty said.

The minister said Posco has also agreed to three major conditions which include employing a certain percentage of local people in the proposed plant, setting up downstream industries near the project and swapping of iron ore within the country.

"The steel company has agreed to swap the iron ore within the state or within the country," the minister said.

Posco had earlier asked for swapping high alumina content iron ore found in the Khandadhar mines, which is in legal row now, with better quality ore from abroad.

Mohanty also said the boundary wall work has already started in the project site and full-fledge work will start soon.

"Construction of boundary wall work has already started and we hope that after the tri-partite agreement and the land transfer, full fledge work will begin at the proejct site," he said.

The Rs52,000-crore Posco project has been stuck for the past seven years, on the back of local opposition to land acquisition coupled with pending environment approvals.

However, the minister said local opposition to the project is fading and the long-pending project will soon start.

"I think, after slashing of land requirement and iron ore swapping issue, local opposition to the project is fading," Mohanty said.

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PMO asks Power Ministry to send new proposal on import duty

There have been demands to slap higher duty on overseas power gear to provide a level-playing field for domestic manufacturers, mainly from China

New Delhi: The Prime Minister's Office (PMO) on Wednesday asked the Power Ministry to float a new Cabinet note on increasing duty on import of cheap equipment, mainly from China, and to provide a level-playing field to domestic manufacturers, reports PTI.

"The Power Ministry will send to the Cabinet a new note to impose (higher) duty on imported power equipment, and it is expected to be taken up in the next 20 days," an official said after attending the PMO meeting.

The meeting, which was chaired by Principal Secretary in the PMO, Pulok Chatterjee, was attended by officials of the ministries of finance, power and heavy industries.

Currently, equipment imported for projects of less than 1,000 MW capacity attract 5% customs duty, while those above that are exempt.

There have been demands to slap higher duty on overseas power gear to provide a level-playing field for domestic manufacturers, mainly from China.

In May, the Cabinet had deferred the proposal to raise the duty on imported power gear.

On the quantum of duty on imported power equipment, the official said, "The Power Ministry will take call in regard to quantum of the duty."

Earlier, the ministers of power and commerce had suggested 19% levy, while the Heavy Industry Ministry has recommended a duty of 14%.

The three ministries had differences on the quantum of basic customs duty that can be slapped on overseas power gear.

While the Power Ministry has pitched for five% customs duty, Commerce and Heavy Industry Ministries are seeking 15% and 10%, respectively.

A committee headed by Planning Commission Member Arun Maira in its report had suggested imposition of 14% levy -- with a customs duty of 10%.

Meanwhile, the Co-ordinating Committee of Secretaries (CCoS) had pitched for 19% levy on imported power gear including five% customs duty.

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COMMENTS

R K PATTATH

5 years ago

When a boy was to be sacrificed in a sacrifice by the king, he was found laughing aloud. He gave his reason for it. My parents who should look after me had sold me for the sacrifice. The king is the guardian of law who is going to sacrifice me. The priest who should advise the king against this injustice is the one who is going to preside over my sacrifice. Hence I laugh at the absurdity. In India we have the same problem. The police, the administration, the legislative, the judiciary, the politicians, the press and the public are all mostly corrupt. Let us laugh at us.

REPLY

S D Israni

In Reply to R K PATTATH 5 years ago

Well said.

Aban

In Reply to R K PATTATH 5 years ago

Simply wonderful. Hats off for this anecdote. This should be sent to the IAC team in particular.

Aban

5 years ago

There can never be any anti-corruption machinery in India. If at all, only the lower grade and level officials are caught by the CBI, etc., just for record. Most cases run too long for the country to remember all this while every day one must be ready to undergo the humiliation of paying bribe to someone or the other for some work with any of the limbs of the state machinery.

K B Patil

5 years ago

We Indians are in a class of our own. We think nothing of bribing God himself. Example: The fees for various sevas in many temples. Higher the seva, higher the fees!!! In certain popular temples like as in Tirupati, netas probably consider themselves above the Gods. There can be no other justification for getting extra facilities and not going through the difficulties faced by ordinary devotees. I have no hesitation in saying that we have an extra thickskin as far as corruption is concerned. Things may improve very slowly and only after the rest of the world has moved far ahead.

REPLY

Nisban

In Reply to K B Patil 5 years ago

Absolutely right. In all the big and high profile temples, you can see the power of money and position. And still the VHP and other Hindutvabadis shout making this country secure for Hindus, while not concerned about corruption.

S D Israni

In Reply to Nisban 5 years ago

While it is true that money plays an important role in darshan at certain temples. But let us not commit the mistake of linking corruption to Hindus only.

Experience indicates that corruption is the most secular language spoken by people belonging to different religions. Name any religion and you will find corrupt fellows. Every religious denomination has a corrupt populace. People from all religions have to fight this menace jointly as corruption has no caste, class or religion, it devours everyone.

C Jyoti

In Reply to S D Israni 5 years ago

I beg to differ, since corruption is part of the religion of the Hindus, as is clear from the manner in which the Pandas and Purohits in the temples behave and almost demand money for enabling people to have "darshan" of the deities. When rich people, big cinema stars, industrialists and political heavyweights like President, PM, CM, etc., visit temples, ordinary devotees are barred from going inside! Just saw the picture of the future/next President of India leaving or visiting the Belur Math, with a monk holding umbrella over his head! Ramakrishna the pauper saint would die of shame if he were still alive! Let us accept that, it is bribe which enabled the Indians to be subjugated by the foreign powers and religions since times immemorial. If Hindus were basically honest, they would have built a RAM MANDIR HOSPITAL at the site of the demolished Babri Masjid.

MK Gupta

5 years ago

Corruption is the natinal religion in India, notwithstanding the public shows being organised for quite some time by a self-styled group of "honest"people--the only ones, as is made out by the organisers and the leaders of the movement. Corruption has long been embedded in our governing system. Bribes must be paid to the police, else families will go missing! Bribes are the birth right of those in the highesr govt offices including bureaucracy, sales tax, RTOs, DDA, electricity supply, birt-death certificate issuing offices, income tax, customs and central/state excise, schools-colleges-universities, hospitals, morgues, all municipal officers and staff, elected councillors and other poeople's representatives in the lower rungs, thugs under police protection, railway top admn down to booking clerk-TTEs, and erc. Yes, there are counter shows of anti-corruption action through CVC, CBI, Vigilance Officers (themselves buying the posts paying huge sums!), and the like. But still corruption thrives since the only measure of one's standard is money and wealt. Can and will anyone deny and still expect the corrupt to be annihilated by action from the top--literally the top? The story of success is mired in the history of corruption.

REPLY

C Jyoti

In Reply to MK Gupta 5 years ago

It is common knowledge that, in Delhi, for construction of one's own house, huge bribes must be paid to the police station monthly and to the beat constables whenever they come for inspection, to MCD-DDA-DJB-BSES, etc. Per floor, police carges Rs. 1 lakh for self construction (Rs. 5 lakhs for builders). MCD charges the same rates. After construction, the houseowner must pay Rs. 14 lakhs (fixed until May) to the concerned MCD officials for just visiting/inspecting the property, legally payable charges for deviation, etc., for getting "Completion Certificates"are over and above this amount which is shared among the top bureaucrats-politicians-lowest field staff (the bribe collectors). And, NO COMPLETION CERTIFICATE IS STILL ISSUED- whatever one may do. And DDA openly challenges everybody to make a complaint to the CBI or the PMO and then see the fate of any application for allotment or possesion or whatever. I am sure the Anna Hazare brigade are blissfully unaware of all this!
No, there is NO EFFECTIVE AND PURPOSIVE ANTI-CORRUPTION MACHINERY OR MOVEMENT IN INDIA> The self styled anti-corrupt votaries themselves must introspect about their ownprofessional ethics, including Hindutva fellows.

dayananda kamath k

In Reply to C Jyoti 5 years ago

you have rightly said. to avoid these payments there was an unique of doing land deals.in 1980's they used to sell the property and give possession of dda propertis by an agreement to sell, an irrovable power of attorney, and irrevocable will. even the legal experts used to give legal opinion to the nationalised banks that the purchaser has valid title and can mortgage the same and banks 9nationalised banks used to take these properties as security and used to give huge loans on the documents executed by the purchaser.when i found these things as an auditor of the bank asked the law officer of the bank in delhi how this can be valid and how he isapproving such legal opinions. he said it is the practice here. i questioned him the power of attorney is to be exercised only for the benfit the executor. just becasue he has power of attorney he can not execute documents and mortgage the property to take loan for himself. it amounts to breach of trust. on the death of executor there is no validity of the power attorney. and a will can not be irrevocable.this is india and you can do any thing there are experts who validate such things as long as there is a big scam which effects the person who matters.

C Jyoti

In Reply to C Jyoti 5 years ago

By way of addendum to my earlier, this may be interesting.
The corruption in the DDA is really of hilarious proportions. As per the DDA's rules (framed for securing deep rooted in house corruption), any person who has paid the amount on allotment of a dwelling unit from out of bank loan, remitted through the applicant's own SB account, a certificate must be obtained from the concerned branch of the bank that the amount has indeed come from the said SB account. In one case, the certificate was issued by the AGM of the SBI, but the DDA insisted the certificate to be "countersigned" by, or be issued by the branch manager (who is below and directly reporting to ) the AGM. The SBI branch at DDA refuses to do this, though all this is easily accessible on their own system. Can you draw the attention of the DDA just to advise them that, any bank transaction of more than a given amount is also automatically and as per law overseen by the Income tax department and is verifiable by anybody? And, even as per the IT Act, it is enough and good evidence if the bank a/c no. is furnished in respect of a DD or a cheque transaction. DDA is so highly corrupt and immune from any punitive action, like the MCD, that the officers and staff openly indulge in corrupt practices with vengeance.

S D Israni

In Reply to C Jyoti 5 years ago

The sad fact is that it is all out in the open, everybody knows the all pervading corruption not only in DDA, but all such other authorities across the country, but nothing happens. Why?

Firstly, corruption being wide spread the corrupt protect each other and try their best to defeat an honest citizen. As majority in the system are corrupt and protected as well, it has become extremely difficult for an individual to fight them; no doubt there are notable exceptions. What is necessary is a joint and concerted action at multiple levels on a continuous basis.

Secondly, there is no real accountability in the system. Even patently corrupt police officers when caught red handed are suspended and in due course they are quietly re-instated, this is the truth in majority of the cases.

Thirdly, money being the only parameter of success in our society, there is no shame, particularly when a corrupt fellow makes real big money. He can become a leader and will get a salute as well. Then some of us will invite him as a chief guest for a function.

R K PATTATH

5 years ago

The executive, legislative and judicial corruption, the Media, Private Sector and political corruption and the omnipresent corruption among the people - it appears that we are in a hopeless situation. False claims, non- payment of dues and evading taxes are charges leveled against those who fight corruption in India. I am not a pessimist. My hopes are centered round the next generation.

Dr Vaibhav G Dhoka

5 years ago

Corruption is age old phenomenon,but to tackle it is human and in India we are taught culturally corrupt.Religion is transactional in India.And we indians are brought up to give God cash and anticipate an out-of-turn reward. Then this becomes habbit and we tolerate to any level.We discuss corruption in house and forget it next day acknowledging oneself that it is part of life.Pity for all of us.

REPLY

SDIsrani

In Reply to Dr Vaibhav G Dhoka 5 years ago

Very true.

Java

In Reply to SDIsrani 5 years ago

India was relatively corruption free during the British rule and for a few decades after independence. The rot set in with the Licence Raj first during our days of fake Socialism and became systemic with the introduction of crony capitalism after the introduction of our fake Liberalisation. It is wrong to blame an entire people for the failure of their leaders and government. This kind of caricature plays into the hand of the criminals, giving them a triumphant excuse to be corrupt and make others corrupt. When India becomes serious about penalising the corrupt and punishes a few top politicians, confiscating their properties, I can assure you that you will start quoting Megasthenese and the Chinese travelers who sang praises of the high character of Indians.

SDIsrani

In Reply to Java 5 years ago

I have nowhere blamed the entire people for the failure of the leaders and the government. I am well aware of our heritage and I broadly agree with you.

In fact, I have stated that, "While we in India tend to believe that we have tremendous amount of corruption in our country as also there are several frauds involving corporate and rightly so, but we are not alone in this; countries across the world are facing these twin problems. However, the major difference seems to be the speedy justice provided to the victims with the guilty being hauled by sending them to jail or making them pay heavy damages so that it would teach them a lesson."

I have clearly stated that we are the victims because the guilty in India are rarely brought to book.

Daniel Haszard

5 years ago

Risperdal reproached.
Same saga here as Eli Lilly Zyprexa.
Johnson and Johnson is a trusted brand we associate with babies.
Risperdal,Zyprexa,as well as the other atypical antipsychotics, are being prescribed for children, even though this is an unapproved, off-label use. An estimated 2.5 million children are now taking atypical antipsychotics. Over half are being given them for Attention Deficit Hyperactivity Disorder,many of these foster children.
Weight gain, increases in triglyceride levels and associated risks for (life-long) diabetes and cardiovascular disease.
Eli Lilly made $65 BILLION on Zyprexa!
*Tell the truth don't be afraid*
Daniel Haszard

REPLY

PPM

In Reply to Daniel Haszard 5 years ago

Pharma companies spend so much money in sponsoring doctors for international seminars and I am sure doctors who are sponsored will have a target (by the pharma companies) to prescribe their medicines (poison).

Pharma companies and doctors combination are the worst form of terrorism on the people - this team play the role of Agents of Lord Yema dharma.

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