The GST Council has recently decided to tax all used vehicles, including electric vehicles, at a uniform rate of 18%. This has led to confusion among car owners, who are now worried about the impact on their profits. However, Finance Minister Nirmala Sitharaman has clarified that the 18% tax will only be levied on the profit made from selling the vehicle, not the entire selling price. The video of her explanation has gone viral on social media, providing much-needed clarity to individuals and businesses.
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.
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.
On December 3, 2024, the Lok Sabha passed the Banking Laws (Amendment) Bill, which introduces important changes to the Indian banking framework. The bill allows bank account holders to nominate up to four individuals for their accounts, streamlining inheritance processes. Finance Minister Nirmala Sitharaman views this as a crucial step towards modernizing banking operations and ensuring better protection for depositors. While this legislation has faced criticism from opposition parties, it has been welcomed by the government as a progressive step towards improving banking regulations in light of evolving financial landscapes.
In a major announcement, Indian Finance Minister Nirmala Sitharaman states that public sector banks are profitable, signaling a shift from their previous loss-making position. In order to further boost this sector, PSU banks will be launching new products to aid in credit growth. Additionally, NABARD chairman asserts that cooperative banks will also undergo digitization by 2025, while RBI urges banks to reduce inoperative accounts in an effort to improve efficiency. The launch of a savings account for rural India by HDFC bank and Union Bank becoming the first major Indian bank to join PCAF for sustainability shows the crucial role banks play in the development of the country.
South Korean Finance Minister Kim Dong-yeon condemned the President's recent actions as anti-constitutional and stated that the people would not stand for it. As tensions rise, parties and officials clash at the parliament building while traffic control is enforced around the presidential office. Meanwhile, foreign media have declared a state of emergency following the government's actions.
The Oil Ministry has proposed the elimination of windfall profit tax on crude oil to the Finance Ministry, while also requesting the inclusion of natural gas and petroleum products under the Goods and Services Tax framework. The upcoming GST Council meeting may discuss this proposal, but many states are cautious about including petroleum products under GST due to revenue concerns. Finance Minister Nirmala Sitharaman has emphasized that the GST law already has provisions for this inclusion, and it is now up to the GST Council to reach a consensus on the matter.
The German government is on the brink of collapse after Chancellor Olaf Scholz fired Finance Minister Christian Lindner due to a lack of trust and conflicting interests. Scholz announced plans to call for a vote of confidence in his government, citing tensions within the current "traffic light" coalition. With the government now lacking a majority in parliament, Scholz intends to work with opposition leader Friedrich Merz on addressing economic and defense issues before potential elections in March. The internal turmoil comes at a critical time as Germany grapples with economic challenges and the aftermath of Russia's invasion of Ukraine.