New Delhi, August 23: Union Finance Minister Nirmala Sitharaman on Friday assured the investors and the citizens the country that the government has kept reforms at the top of the agenda. The minister stated six pointers to revive the slowing economy and withdrew surcharge on FPI to boost investment in the capital market.
Among the significant announcements, she stated that enhanced surcharge of FPI goes. She said, "In order to encourage investment in the capital market, it is decided to withdraw enhance surcharge levied by the Finance No. 2 Act 2019. In simple words, the enhance surcharge on FPI goes, the surcharge on domestic investors in equity goes. The pre-budget position is restored." CEA Krishnamurthy Subramanian Differs From Niti Aayog VC, Says Private Sector Must Change its 'Papa Bacha Do Mujhe' Attitude.
With the reports of economic crisis circulating in the media for the last couple of weeks, the Finance Minister stated that the Ministry is not in favour of harassment and respects the wealth creators of the country. Sitharaman said that faceless and randomised process is being opted.
Addressing the media, she said, "There will be faceless scrutiny from 'Vijay Dashmi' this year, which will mean that there shall not be even, that one odd over-enthusiastic officer who might go and sit & talk about things, which may be construed as harassment."
Highlights of Sitharaman's Press Conference:
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Apart from stating on various issues, she said the reforms were taken by the Union government which includes single air and water clearance for MSMEs, and single consent to establish a factor by MSMEs. Also, GST filling will be further simplified, faster and easier approvals for mergers and acquisitions, she said. Nirmala Sitharaman's Remedy For Ailing Auto Sector & Real Estate: Cheaper Loans, Easy EMIs
Here's Full List of Announcements Sector Wise:
Investors and FPI:
1) To encourage investment in the capital market, the enhance surcharge on FPI goes, the surcharge on domestic investors in equity goes. While the pre-budget position is restored.
2) For ease of start-ups, Section 56(2)(viib) of Income-Tax Act shall not apply to those registered with DPIIT.
3) CSR violations not to be treated as the criminal offence will instead be a civil disability.
4) Specially dedicated cell under Member of CBDT for addressing the problems of startups.
5) Fixed-term employment and web-based jurisdiction are being facilitated for a free inspection under new labour laws.
NBFCs and Banks:
1) Upfront release of Rs 70,000 cr., additional lending and liquidity to the tune of Rs 5 lakh crore by providing upfront Capital to PSBs.
2) Banks to issue improved transparency OTS policy to benefit MSME and retail borrowers in settling their overdue.
3) Rate cuts by banks through MCLR reduction to benefit all borrowers.
4) Non-Banking Financial Company (NBFCs) to be permitted to use Aadhaar authenticated bank KYC to avoid repeated processes. Also, prepayment notices issued to NBFCs to be monitored by banks.
5) Specially dedicated cell under Member of CBDT for addressing the problems of startups. CSR Violations Not to be a Criminal Offence, Announces Finance Minister Nirmala Sitharaman.
Goods & Services Tax:
1) All Pending GST Refunds To Be Paid Within 30 Days To All MSMEs.
2) Future GST Refunds To Be Sorted Out Within 60 Days.
3) MSME Act Will Ensure One Standard Definition For MSME, Doing Away With All Complications.
Automobile and Real Estate:
1) More credit support for houses, vehicles, consumption goods.
2) Additional liquidity support to Housing Finance Companies (HFCs). Rs 20,000 crore by National Housing Bank (NHB) thereby increasing it to Rs 30,000 crore.
3) Online tracking of loan applications by consumers of retail, MSME, housing, vehicle, working committee, limit enhancement, renewals, etc.
4) Reduced EMI for housing loans, vehicle and other retail loans by directing repo rate to interest rates.
5) Proposal to establish an organisation to provide Credit Enhancement for Infrastructure.
6)Amended Companies (Share Capital and Debenture Reules) 2014 top remove the requirement for the creation of a Debenture Redemption Reserve (DRR).
(The above story first appeared on LatestLY on Aug 23, 2019 05:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).