India is the world’s seventh largest economy by nominal GDP- Chowna Mein
Arunachal Pradesh Dy CM says- India is the world’s seventh largest economy by nominal GDP and the third largest by purchasing power parity (PPP) which is expected to grow by 7% in 2019 and 7.2% in the year 2020-
Itanagar
Addressing the BJP State Executive Meeting at Jullang today, Deputy Chief Minister, Chowna Mein highlighed the measures taken by the Govt of India to boost the Indian economy.
He informed that India is the world’s seventh largest economy by nominal GDP and the third largest by purchasing power parity (PPP) which is expected to grow by 7% in 2019 and 7.2% in the year 2020.
He said that the Govt of India is giving topmost priority to the economic development of the country and to boost the Indian economy, the Union Finance Minister, Smt. Nirmala Sitharaman has made many historic announcements on 20th Sept 2019 to boost up the economy, to encourage investment and to create new opportunities towards job creation.
“These announcements will ultimately lead to the fast growth in industrial development and benefit a large number of small traders and public”, Mein said.
He informed that the current size of the Indian economy is estimated at USD 2.7 trillion and the Govt. has announced to make India a USD 5 trillion economy by 2024 which will require major structural reforms over a vast range of sectors in the coming years.
He further informed that to augment India’s manufacturing sector and to encourage foreign and domestic companies to invest in our country, the Union Finance Minister has reduced the corporate tax from 30% to 22%. In addition for new domestic manufacturing companies, making fresh investment incorporated on or after 1st October 2019 also have an option to pay a tax at the rate of 15%.
The Union Govt also relaxed the guidelines of ECB (External Commercial Borrowing) to facilitate financing for home buyers who are eligible under the Pradhan Mantri Awas Yojana (PMAY), in consultation with RBI which will help in completion of affordable and middle income housing projects that were lying incomplete since long time.
“In order to avoid inconvenience to farmers and other stakeholders in the agriculture sector, agents operating under APMC (Agriculture Produce Market Committees), the Govt have exempted 2% TDS on cash payments over Rs 1 Crore”, he said.
The Union Government has expanded the scope of Corporate Social Responsibility (CSR) and allowed companies to place 2% CSR funds for research in incubation centres of colleges/universities run by central or state government or public sector undertaking companies to accelerate the field of research and development in India and encourage new researchers. Companies will also get new possibilities to upgrade their products and services under this, he added.
In addition to the above, the Union Govt took many other important decisions to improve the economy in the last one month and as a part of the reform in the Banking sector, the Govt merged 10 public sector banks to form 4 banks. By doing this, the number of banks in the country which was 27 in the year 2017 will now be12. He stated that the merger of banks will increase CASA (Current Account Savings Account) as well as public relations and will make the banks profitable. In this regard, the Govt. has advanced a sum of Rs 70,000 crore to the public sector banks which will benefit corporate, retail borrowers, MSMEs, small traders etc.
The Govt. has also reduced the EMI of housing loans, auto and other retail loans which will make the working capital loans cheaper for the industries. The Govt. Also withdrew the surcharge by the long & short term capital gains received from the transfer of the equity shares/units in order to promote investment in the capital market.
The Govt. has also decided to make the IT Dept. online and to issue all notices, summons, orders etc. through a centralised computer system by the Income Tax authorities to end harassment of taxpayers.
The central Govt has also taken some punitive measures to increase the exports and decided to release additional fund for export credit under priority sector and as such the scope of export credit insurance scheme will increase. The bank’s lending for exports will be given more insurance cover. In addition to that it has been decided to provide duty exemption on goods exported in order to boost exports, Men informed.
Mein also informed about changes and modifications under GST which will benefit common man. Some of which are: No GST on hotel rooms below Rs 1000 and the rate of GST on hotel rooms ranging from Rs. 1000/- to Rs. 7500/- has been reduced from 18% to 12% and hotel rooms above Rs. 7500/- will attract GST of 18% instead of 28%, GST rate on outdoor catering up to Rs. 7501/- has been reduced to 5% with ITC from the current 18% with ITC, GST rate on outdoor catering above Rs. 7501/- will remain at 18%, GST on diamond job work has been reduced from 5% to 1.5% and GST on machine job supply has been reduced from18% to 12%.
He further informed about the decision of Central Govt to exempt food items that can be stored like pulses, rice, tea, coffee, nuts, spices etc. To encourage eco-friendly vehicle, GST rate on electric vehicles has been reduced from 12% to 5% and vehicle charger and charging point has also been reduced from 18% to 5%.
He also said that the filling of new return system will be introduced from April, 2020 (earlier proposed from October, 2019) in order to give ample opportunity to taxpayers as well as the system to adapt accordingly. Annual return form GSTR 9A for composition taxpayers for the tax period 2017-18 and 2018-19 has been waived off and Annual return form GSTR 9 for the taxpayers having aggregate turnover up to Rs. 2 Crores made optional for the tax period 2017-18 and 2018-19.
He further informed that the all pending payments under refund of GST till now of MSME (Micro, Small & Medium Enterprise) will be made within 30 days and future payment cases will be resolved within 60 days. He also informed that the integrated refund system with disbursal by single authority was introduced from 26th September, 2019.
Mein also highlighted the benefits of implementing Goods & Services Tax (GST) in the State saying that the introduction of Goods & Services Tax in the State of Arunachal Pradesh has been a positive revenue event for the State.
“There is a growth in revenue collection in the State since implementation of GST and the State has registered an exponential growth in the number of registered dealers”, Mein said.
He informed that the collection for Financial Year 2018-19 from GST was 569.41 Cr which has witnessed almost 111% growth in comparison with 9 months of previous Financial Year.
He said, ‘”Arunachal Pradesh is one of the few States to record positive growth since implementation of GST and the State topped the list in the North Eastern States with collection of Rs. 304.74 Cr. in the current Financial Year 2019-20 (April-August).
He further said that the State Govt under the dynamic leadership of Chief Minister, Shri Pema Khandu stand committed by the noble decisions of our Central Leadership towards making of a Modern India where Modern Technique, Transparent Governance and Equitable Society are the benchmark for fulfilling the objective of ‘Sabka Saath – Sabka Vikas and Sabka Viswas’”.
He urged upon the State Executives of BJP to strengthen the hands of Prime Minister in realizing his vision of New India.
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