Wondering if you are up to speed with topics that are likely to pop up at your upcoming dinner meet? Here is an overview of whats trending in economy and finance this week:
When someone says G.S.T. tax slabs are complicated, tell them don’t you worry the government has a plan for you:
The government in the future might combine the 12 percent and 18 percent tax slab under G.S.T. as one rate and reserve the 28 percent category for demerit goods. This will make the G.S.T system in India a three rate system (5% for essential goods, a combined 12%-18% for core goods and a 28% for demerit goods) instead of the current 4 rate system. However India will never adopt a single tax rate system because of its socialist mind set, states Arvind Subramanian who is the Chief Economic Advisor to the Government of India.
When someone says that after G.S.T it’s time for the Income Tax Act to get a makeover here’s what they mean:
After the G.S.T. now the government might change the Income Tax Act which was drafted more than 50 years ago in 1961. This law will be made keeping in mind the current economic needs of the country. To draft the law the the government has set up a seven-member task force. The team will submit the report in 6 month and draft direct tax laws in line with tax laws prevalent in other countries, incorporating international best practices, and keeping in mind the economic needs of the country.
When someone brings up cheque books say that they might be banned forever to boost digital transactions:
Demonetization that increased digital transactions might soon be followed by another move: Ban of the cheque book. Currently, more than 95% of transactions take place via cash and cheques thus a ban on cheque books could give a big boost to digital transactions. While cash in circulation is still 91%, digital transactions rose by 31% after demonetization. A ban on cheque books might bring India closer to their target which is to meet the goal of 25 billion digital payments by the end of this fiscal. However this is just a rumour confirmed the Government and the Finance Ministry.
When someone talks Moody’s rating for India you could say that S&P (Another Global Rating Agency) has not changed their rating for India:
Even though Moody’s upgraded India’s rating, S&P refused to upgrade India’s rating because it believes that India has high government debt and low income levels. The government termed this move as “unfair”, calling S&P a “conservative” rating agency. Railway Minister Piyush Goyal said the rating agency is known worldwide to be a far more conservative when compared with Moody’s or Fitch.
When someone talks about onion prices you can say that the government has put a minimum price limit on onion exports:
The government has mandated a minimum price of $850 per tonne for export of onions so that domestic supply increases and also to keep a check on rising onion prices. This means traders cannot export onions below $850 per tonne until the end of 2017. However this will affect exporters as other countries are selling onions at cheaper rates. Average prices at Lasalgaon, India’s largest wholesale onion market rose to 3,211 rupees per 100 kg last week, the highest in two years.
Now that you know these topics, the next time someone mentions them you know what to say. If there are any such topics spoken about at a party that have made you feel out of the loop, write to us at firstname.lastname@example.org and we will cover it in our next edition.