New Delhi: On a day when Niti Aayog Vice-Chairman Rajeev Kumar flagged the economy’s state as an “unprecedented situation” in the past 70 years, Union Finance Minister Nirmala Sitharaman made a host of announcements to jump-start the economy. The minister announced a number of measures on Friday to address the sore points that erupted in the aftermath of the Union Budget 2019 and the slowdown plaguing the automobile sector.
Here are highlights from the press conference:
Enhanced surcharge on FPIs stands withdrawn. Surcharge on domestic investors in equity markets also withdrawn
Aadhaar-based KYC for opening demat accounts and investment in mutual funds
Govt working to bring offshore rupee market to domestic market.
Govt to consult with RBI to enhance Credit default swap options.
CSR violation would be treated as a civil offence, not a criminal offence.
All pending GST refunds till now shall be paid in 30 days. Future GST refunds to be paid in 60 days.
FM Sitharaman vows to simplify the GST system further.
BS-IV cars purchased till March 2020 to remain operational for the entire period of registration.
Govt asks its departments to replace old vehicles
Higher vehicle registration fee deferred to June next year.
Higher depreciation for all vehicle: Depreciation increased to 30 per cent for all vehicle purchased till March 2020.
Scrappage policy to be announced soon.
Govt withdraws angle tax provision for startups and their investors.
One-time s ettlement policy for MSME loans. Policy to be based on check box approach
Laws to be amended to ensure one MSME definition.
Home, auto loans
Banks to make home, auto loans cheaper. Banks have agreed to pass on the rate cut announced by RBI to customers. Banks to launch Repo Rate linked loans.
Online tracking system for home, auto loans.
PSBs to return loan documents to customers within 15 days of loan closure.
FM vows steps to end tax harassment. Old tax notice to be decided by October 1.
From October 1, all Income Tax notices must be disposed off within 3 months.
NBFC can now use Aadhaar-based KYC
Prepayment notices issued to NBFCs will be monitored by banks.
Additional liquidity to support Housing Finance Companies by National Housing Board increased to Rs 30,000 crore
Govt to release Rs 70,000 crore upfront for PSBs recapitalisation.
Other key announcements
As Prime Minister Narendra Modi said, govt respects the wealth creators. Govt wants resolution not prosecution.
Task Force to be formed to finalise ways to fund infra projects; projects to be monitored actively to accelerate capital expenditure and investment.
Slowdown in consumption is not specific to India and emerging nations.
Current global GDP growth is expected at 3.2% and probably going to be revised downwards.
Indian growth is still higher compared to many countries.
China trade war and currency devaluation leading to volatile.