There are still a number of uncertainties and matters of debate surrounding the details of India’s proposed good and services tax (GST).
Perhaps most significantly, the rate at which the nationwide GST would be fixed has yet to be decided.
“Finance minister Arun Jaitley has stated that his preferred tax rate would be around 22 per cent, but some state assemblies have demanded that the GST be set as high as 27 per cent,” says Shilan Shah, the India economist at Capital Economics. He explains that could make it substantially higher than many similar taxes globally.
A parliamentary committee suggested a rate of 20 per cent.
Another area of concern is which goods should actually fall under GST.
“The biggest sticking point is the inclusion of alcohol and petroleum products, which account for over 30 per cent of tax revenues in a number of states,” says Mr Shah. “Jaitley has agreed in principle to exclude these goods from the GST if it means that a lower overall GST rate can be adopted. But while this may placate certain state assemblies, it will ultimately dilute the impact that the GST will have on raising revenues for central government.”
There have also been arguments raised by states over the amount of compensation they should receive from the central government for lost revenues that arise from the reform, he adds.
To come into effect, the reform would need the approval of at least half of the Indian states.
“The actual impact of the implementation of the unified tax regime on the economy cannot be gauged as several loose ends like the rate of tax, the efficacy with which the infrastructure and requisite technology for the collection of tax can be deployed, the formation of the committee for determining the tax rate and the awareness angle need to be tied up,” says Areef Patel, the vice chairman of Patel Integrated Logistics.
HSBC in a recent report highlighted that “over time the ideal form of the bill has been watered down by exemptions and a distortionary one per cent additional tax on interstate movement of goods”.
The bank also pointed out that a high rate of GST could impact inflation significantly.
There are, however, still clear benefits to the reform, which is widely supported by business leaders and investors.”
“GST legislation is probably the most awaited and high impact regulatory reform in India, in the past 2 decades,” says S Venkat, the founder and director of MyCFO, a financial implementation services company.
“The proposed GST law will have far reaching implications on Indian corporates, in terms of their tax costs, supply chain arrangements and working capital requirements. For foreign investors, GST will address their single biggest concern of doing business in India: complexity in tax laws.”
He explains that it would help investors to understand the tax costs they would incur in India.
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Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
Sweet%20Tooth
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The specs
Price, base / as tested Dh960,000
Engine 3.9L twin-turbo V8
Transmission Seven-speed dual-clutch automatic
Power 661hp @8,000rpm
Torque 760Nm @ 3,000rpm
Fuel economy, combined 11.4L / 100k
UAE currency: the story behind the money in your pockets
Fifa Club World Cup quarter-final
Esperance de Tunis 0
Al Ain 3 (Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)
Company%20Profile
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Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Results
Men's finals
45kg:Duc Le Hoang (VIE) beat Zolfi Amirhossein (IRI) points 29-28. 48kg: Naruephon Chittra (THA) beat Joseph Vanlalhruaia (IND) TKO round 2.
51kg: Sakchai Chamchit (THA) beat Salam Al Suwaid (IRQ) TKO round 1. 54kg: Veerasak Senanue (THA) beat Huynh Hoang Phi (VIE) 30-25.
57kg: Almaz Sarsembekov (KAZ) beat Tak Chuen Suen (MAC) RSC round 3. 60kg: Yerkanat Ospan (KAZ) beat Ibrahim Bilal (UAE) 30-27.
63.5kg: Abil Galiyev (KAZ) beat Nouredine Samir (UAE) 29-28. 67kg: Narin Wonglakhon (THA) beat Mohammed Mardi (UAE) 29-28.
71kg: Amine El Moatassime (UAE) w/o Shaker Al Tekreeti (IRQ). 75kg: Youssef Abboud (LBN) w/o Ayoob Saki (IRI).
81kg: Ilyass Habibali (UAE) beat Khaled Tarraf (LBN) 29-28. 86kg: Ali Takaloo (IRI) beat Emil Umayev (KAZ) 30-27.
91kg: Hamid Reza Kordabadi (IRI) beat Mohamad Osaily (LBN) RSC round 1. 91-plus kg: Mohammadrezapoor Shirmohammad (IRI) beat Abdulla Hasan (IRQ) 30-27.
Women's finals
45kg: Somruethai Siripathum (THA) beat Ha Huu Huynh (VIE) 30-27. 48kg: Thanawan Thongduang (THA) beat Colleen Saddi (PHI) 30-27.
51kg: Wansawang Srila Or (THA) beat Thuy Phuong Trieu (VIE) 29-28. 54kg: Ruchira Wongsriwo (THA) beat Zeinab Khatoun (LBN) 30-26.
57kg: Sara Idriss (LBN) beat Zahra Nasiri Bargh (IRI) 30-27. 60kg: Kaewrudee Kamtakrapoom (THA) beat Sedigheh Hajivand (IRI) TKO round 2.
63.5kg: Nadiya Moghaddam (IRI) w/o Reem Al Issa (JOR).
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Pakistanis%20at%20the%20ILT20%20
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COMPANY%20PROFILE
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