EAC-PM discusses ways to rollout of mega healthcare scheme

The Prime Minister’s Economic Advisory Council (EAC-PM) these days mentioned attainable ways that to implement the world’s largest health protection plan declared within the Union Budget.

Mega Healthcare Scheme

Finance Minister Arun Jaitley, in his Budget Speech on February 1, announced that the government would launch a National Health Protection Scheme to cover more than 10 million households (around 50 million rupees) providing annual coverage of up to 5 lakh rupees per family for hospitalization of secondary and tertiary care.

 

Taking into account the national health plan announced by the government in the Budget for the year 2018-19 presented in the Parliament on February 1, 2018, the EAC-PM discussed the possible modalities of implementation of the plan.

The mega scheme will probably be launched on August 15 or October 2.

It was the fourth meeting of the EAC-PM, chaired by Bibek Debroy, member, NITI Aayog.

The statement added that Shamika Ravi, a part-time member of the EAC-PM, gave a presentation on health reforms.

Another part-time member of the EAC-PM, Ashima Goyal, made a presentation on the draft of the Indian Fiscal-Monetary Framework: Dominance or Coordination?

Poonam Gupta, lead economist – India, World Bank, gave a presentation on the World Bank Report on the Indian economy. PTI NKD MKJ SBT

Will Budget decision of customs duty hike boost domestic market

The budget decision of customs duty hike boost domestic market? 

In his speech on the 2018 budget of February 1, Finance Minister Arun Jaitley announced an increase in the customs tariff on 40 categories of goods in the range of 33-100 percent. It was said that the increase in customs duties could achieve the objectives of promoting national value added through the promotion of “Make in India” and the creation of more jobs in the country.

Make in India and Budget

Will the movement achieve these goals?

How will the general collection of the central government’s customs duties impact?

How big is the coverage of the decision of the budget of Finance Minister Arun Jaitley to increase the customs tariff on the import of a variety of items? And what will be the impact of the decision on the collection of government customs duties during 2018-1919?

A quick analysis of government data shows that the coverage of customs duties is relatively large, but the figures for collecting customs duties in the budget may be an underestimate.

Until February 40, 2018, basic customs duties were collected for up to 40 product categories. According to the speech on the February 1 budget, these changes of obligations were made to provide adequate protection to the national industry, encourage national added value by promoting ‘Make in India‘ and help create more jobs in the country.

Almost a quarter of India’s total imports could be affected

In addition, almost a quarter of India’s total imports could be affected by the higher customs duty imposed by Jaitley on these imports. The value of imported items whose basic customs duty has increased was estimated at $ 75 billion in the period from April to November 2017-18.

This represented approximately 25 percent of total imports of $ 297 billion during the first eight months of 2017-18, for which we have the latest foreign trade data based on basic products.

In 2016-17, these 40 product categories saw imports of $ 85 billion, which was 22 percent of total imports of $ 384 billion that year. One year before that, imports of the same items were valued at $ 88 billion, which represents a 23 percent share of total imports of $ 381 billion during 2015-16.

At the aggregate level, there was a notable increase in imports of these 40 product categories in the period from April to November 2017-18. If imports in the current year were carried out at the same rate as observed in 2016-17, the value of imports of these 40 items should have reached a level of only $ 56 billion in the first eight months of the year. fiscal in progress.

However, as the data show, these imports in the same period have already reached $ 75 billion, indicating an increase of 34 percent.

Imports of diamonds and precious stones

Diamonds and precious stones (excluding rough diamonds) accounted for most of the imports that were affected by the increase in customs duty announced in the budget.

Imports of diamonds and precious stones in April and November 2017 were estimated at $ 50 billion (almost 17 percent of total imports), compared to imports of $ 54 billion in all of 2016-17 and $ 56 one billion in 2015-16.

The basic tariff on these items has doubled from 2.5 percent to 5 percent.

How budget effected Diamond

Experts point out that imports of diamonds and precious stones are linked to exports since a large part of those imports are used for exports after the addition of value. But that link has been negatively affected in recent years. Exports of diamonds and precious stones were valued at only $ 28 billion in the period from April to November 2017-18, $ 44 billion in 2016-17 and $ 39 billion in 2015-16.

Imports increased much faster than exports in 2017-18 than in the two previous years.

Cellular mobile phones and their specified parts and accessories have seen their customs duties rise from 15 to 20 percent, and from 7.5 to 15 percent, respectively.

The combined value of their imports has also seen an increase of $ 12 billion in April-November 2017. Compare this with imports of around $ 16 billion each in 2015-16 and 2016-17; an increase of 12 percent in its imports in the current financial year is remarkable, which could well have led to the Budget action to increase the customs tariff.

Smart watches and portable devices

Smart watches and portable devices (including perhaps the hugely popular smartwatches produced by Apple) have seen their customs duties rise from 10 percent to 20 percent. Its imports in 2015-16, estimated at $ 2.3 billion, rose marginally to $ 2.38 billion in 2016-17.

But in the first eight months of the current fiscal year, they were estimated at $ 2.44 billion, registering an intelligent increase.
The accessories of automotive vehicles, automobiles, and motorcycles have also seen that the customs tariff on them increases from 7.5-10 percent to 15 percent. Its imports in 2016-17 decreased to $ 6 billion from $ 6.49 billion in 2015-16. But the pace rose somewhat in the period from April to November 2017-18 when its imports were estimated at $ 4.95 billion.
Edible oils of vegetable origin are the other category of products with significant imports that have increased the customs tariff in the budget from 12.5-20 percent to 30-35 percent. Its imports have steadily increased from $ 1.5 billion in 2015-16 to $ 1.6 billion in 2016-17. Maintaining this rate of increase, its imports in the first eight months of 2017-18 were estimated at $ 1.3 billion.

With the exception of diamonds and precious stones, almost all other items on the list of the 40 selected for a higher basic customs tariff are used to a large extent for domestic sales and consumption. Diamonds and precious stones contribute significantly to exports.

Salient features of Finance Bill, 2018

Important Features of Budget 2018

    •  No change in the tax rate. All people, including people, HUF, companies, and companies, must pay the same tax. However, access to education is increasing from 3 to 4%, which is known as “education and health“.

 

    •  However, for national companies that have a total turnover or gross receipts that do not exceed Rs 250 crores in the fiscal year 2016-17, they will be required to pay taxes at 25% compared to the current maximum limit of Rs 50 crore in the fiscal year 2015-16.

 

    • Exemption from the long-term capital gain exemption under section 10 (38) with respect to paid STT shares.

 

    • However, the capital gain until 31.1.2018 will not be taxed since the acquisition cost will be taken as the fair market value as of 31.1.2018.

 

 

    • Tax on long-term paid capital STT The gain will be 10% under Section 112A. In addition, said the tax will be responsible for TDS.

 

    • The standard deduction of 40,000 rupees for salaried employees. However, the benefit of the transport subsidy of Rs 19,200 and the medical rebate of Rs 15,000 under section 17 (2) are being taken off. Therefore, the net benefit for class wages of only Rs 5,800.

 

    • Provision of Section 43CA, 50C and 56 (2) (x) modified to allow for a consideration of 5% of the sale in the variation with respect to the value of stamp duty. Because of the location, the disadvantage, etc.

 

    • The provision of section 40 (ia) and 40A (3) and 40A (3A) is being applied to the Charitable Foundation. Therefore, expenses incurred without tax deduction and in cash will not be eligible for income application under section 10 (23C) and section 11 (1) (a).

 

    •  The income/loss derived from the products derived from agriculture should not be considered as speculative in section 43 (5).

 

    • The Information and Computing Income Standards (ICDS) receive legal backing in light of the decision of the Delhi Supreme Court decision.

 

    •  Marked by the market loss calculated according to the ICDS to be allowed in section 36.

 

    • Gain or loss in foreign currency according to ICDS to be allowed under new section 43AA.

 

    • Income from the construction contract that will be calculated in the percentage of completion method according to ICDS.

 

    • Valuation of Inventory Values according to ICDS.

 

    • Interest for compensation improved compensation. Claim or subsidy of claim or improvement, incentives to tax in the year of receipt only according to the new Section 145B.

 

    • Conversion of shares in the trade to the capital asset that will be charged as commercial income in the year of conversion to fair market value on the date of conversion.

 

    • 54EC benefit of the investment in Bonds that will be limited to the capital gain on land and construction only. The additional period of tenure was increased from 3 years to 5 years.

 

    • The NAP must be obtained by all entities including HUF that are not individuals in case the financial transaction aggregate in a year is Rs 2,50,000 or more. All directors, partners, members of these entities also to obtain PAN.

 

    •  All companies, regardless of the income to submit the declaration and in case it has not been submitted, these companies will be responsible for prosecution, regardless of whether it has the tax liability of Rs. 3,000 or not.

 

    • Evaluations to be evaluated electronically according to the new section 143 (3A)

 

    • There is no adjustment under section 143 (1) while processing due to the mismatch with 26AS and 16A.

 

    • The attributed dividend will be taxed in the hands of the company itself as Dividend Tax distribution @ 30%.

 

    • The fine for undocumented financial return as required in section 285BA is increased to Rs 500 per day.