The 55th GST Council meeting in Jaisalmer resulted in a flood of demands for disaster-specific levy by several states, following a request from Andhra Pradesh for a 1% GST levy to fund their flood recovery efforts. A Group of Ministers has been formed to examine the legal and structural issues surrounding this proposal, which was discussed in detail during the council meeting. Finance Minister Nirmala Sitharaman stated that other states such as Uttar Pradesh, West Bengal, and Telangana have also expressed interest in being a part of the committee. The issue of a similar flood-cess levy by Kerala in 2019 was also brought up, with other states showing support for Andhra Pradesh's demand.
After highly anticipated negotiations, the Mahayuti alliance announced its cabinet portfolios for Maharashtra's ministers on Saturday evening. Highlights include CM Devendra Fadnavis retaining the Home Ministry and Eknath Shinde of the Shiv Sena receiving the Urban Development portfolio. This comes after the alliance dropped several leaders from its cabinet expansion. The winter session of the Maharashtra legislative assembly concluded today with six days of intense discussions and debates. Additional key meetings will take place today regarding the portfolio distribution for the new cabinet, with several key players vying for key positions.
During the 55th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced that the Goods and Services Tax on rice kernels has been reduced from 18% to 5%, while life-saving gene therapy will now be exempt from tax. Additionally, parts used in manufacturing surface-to-air missiles will continue to be exempt from GST. However, the tax rate on caramelised popcorn has been increased to 18%, citing its harmful effects on health. The Finance Minister also clarified that payment aggregators will be eligible for exemptions, but this does not apply to payment gateways and fintech services.
Finance Minister Nirmala Sitharaman announced that properties worth Rs 22,280 crore have been restored to pay off the debts of wanted individuals such as Vijay Mallya, Mehul Choksi, and Nirav Modi. This includes Rs 1,052 crore from Modi and Rs 2,565 crore from Choksi. The Finance Minister's statement comes after questions were raised about the Enforcement Directorate's low conviction rate in cases under the Prevention of Money Laundering Act. Congress leader Randeep Surjewala has accused the ruling party of using agencies like the ED to target opposition leaders.
In a major blow to the liberal government of Canadian Prime Minister Justin Trudeau, his Deputy Prime Minister Chrystia Freeland has resigned following disagreements over economic policies and handling of trade relations with the US. This resignation comes at a crucial time as Trudeau's government is already facing internal divisions and a growing rift with the opposition party. With upcoming elections, this resignation adds to the mounting challenges for Trudeau and raises concerns about his leadership abilities.
In a significant development, Switzerland has taken a unilateral decision to revoke the 'Most Favoured Nation' status accorded to India under the Double Taxation Avoidance Agreement (DTAA) treaty. This move will have a major impact on Indian businesses operating in Switzerland as well as Swiss investments in India. The decision was made by the Swiss finance department in response to the Supreme Court of India's 2023 ruling, stating that the MFN clause between two nations does not automatically apply when a country joins the OECD. This raises questions on the interpretation and application of the MFN clause in tax treaties under the OECD, which is known for shaping international policies for better economic and social outcomes.
In a move to accelerate its growth and expand its reach beyond metros and tier 1 cities, Max Life Insurance Co. Ltd. has officially changed its corporate name to Axis Max Life Insurance Ltd., after receiving approval from the registrar of companies. Along with the name change, the company has refreshed its brand identity and logo, incorporating Axis's 'A' and burgundy shade. This rebranding aims to combine the expertise and legacy of Max Life with the trust and familiarity of Axis, in order to create exceptional value for stakeholders and capitalize on new opportunities. With an enhanced distribution network and expanded partnerships, Axis Max Life is well-positioned for strategic expansion and value creation.
In an effort to support first-time home buyers, Norway's finance ministry has announced a reduction in the equity requirement for purchasing a dwelling. The new requirement will be lowered from 15% to 10%, allowing more individuals to enter the housing market. While this may increase overall housing demand, regulations on banks' flexibility in assessing customers' serviceability and rules on installment payments for mortgages and consumer loans will remain unchanged. This decision aims to make home ownership more accessible for young and inexperienced buyers, potentially stimulating the housing market and boosting economic growth.
Shares of financial technology company One Mobikwik Systems were in high demand on the first day of its initial public offering, with bids for over double the number of shares available. This success bodes well for the company's future growth and potential to disrupt the financial industry. Stay updated on all the latest business news, stock market updates, and personal finance tips from Zee Business.
During his six-year tenure, RBI Governor Shaktikanta Das successfully steered India's monetary policy through various challenges, including the COVID-19 pandemic. Through measures such as a loan moratorium, lowering of repo rates, and loan restructurings, Das helped revive the Indian economy. His leadership also saw significant progress in digital finance and inclusive digital payments, making strides towards financial inclusion. His strict regulatory measures improved the health of the Indian banking sector and lowered inflation levels, contributing to a stable economy.