The DESH Bill

~Preet 

sez.jpg This image does not belongs to the writer or publisher this image was found on https://economictimes.indiatimes.com/news/economy/policy/partial-denotification-of-sezs-single-window-clearance-mechanism-in-desh-draft/articleshow/92396526.cms


During the forthcoming monsoon session of Parliament, the government intends to introduce the Development of Enterprise and Service Hubs (DESH) Bill. It intends to revitalise interest in SEZs and establish more inclusive economic centres by overhauling the existing Special Economic Zone regulations from 2005. SEZs will be renamed Development Hubs and will be exempt from many of the rules that presently limit them. These hubs will serve as both domestic tariff areas and SEZs, facilitating both export-oriented and local investment. To bring taxes in line with those imposed by units outside the country, the government may apply an equalisation levy on products or services supplied to the domestic market.

The World Trade Organization's dispute resolution panel decided that India's export-related programmes, particularly the SEZ Scheme, were in violation of WTO norms since they directly connected tax breaks to exports. Direct export subsidies are not permitted because they might affect market prices. SEZs began to decline with the implementation of a minimum alternative tax and a sunset provision to eliminate tax breaks. SEZ units used to get a 100% income tax exemption on export income for the first five years, a 50% exemption for the following five years, and a 50% exemption on ploughed-back export earnings for another five years.

Beyond increasing exports, it aims to encourage local industry and job creation through 'development centres.' These hubs will no longer be needed to be net foreign exchange positive cumulatively in five years (i.e., export more than they import), as required under the SEZ system, and will be able to sell more readily in the local market. As a result, the hubs will be WTO-compliant. The DESH law calls for an online single-window system to issue time-bound permissions for the establishment and operation of the hubs. Companies can sell in the domestic market while paying tariffs solely on imported inputs and raw materials rather than the finished product. In the current SEZ regime, duty is paid on the final product when a product is sold in the domestic market. Furthermore, unlike SEZs, there is no mandatory payment requirement in forex. State boards would be set up to oversee the functioning of the hubs. They would have the powers to approve imports or procurement of goods and monitor the utilisation of goods or services, warehousing, and trading in the development hub. The commerce department at the Centre made the majority of decisions under the SEZ regime. States may now participate and even make ideas for development centres straight to a central board for approval.

Comments

Post a Comment

Popular posts from this blog

The Digital India Will Soon Get The Digital Rupee

Image
 ~Preet The writer and the publisher have no rights to this image. This image has been taken from,  Digital-Rupee-–-Its-Understanding.jpeg The Reserve Bank of India (RBI) will shortly launch restricted pilots of the e-rupee, also known as Central Bank Digital Currency (CBDC) or digital rupee, for specified use cases. It has hinted at two major categories for the usage of e-rupee for various transactions — retail and wholesale.  The CBDC is defined by the RBI as a digital representation of currency notes issued by a central bank. It is a sovereign or completely autonomous currency issued by the country's central bank (in this case, the RBI) in line with monetary policy. CBDC will be recognised as a means of payment and legal tender by all three parties - individuals, government agencies, and businesses - once it is formally issued. Because it is government-backed, it may be readily exchanged for money or notes from any commercial bank. The RBI is not enthusiastic about the e-rupee.
Read more

Being Women Gets You Bail.

Image
 ~Preet The writer or the publisher has no rights to the image. The image is taken from  teestaaa.jpg In a world where there is a constant cry for the propagation of the idea of equality, it seems that preferential upliftment is actually being sought to be achieved, but such a bias in the criminal justice system conflicts with its very principle of it. The Supreme Court of India recently granted Teesta Setalvad interim release, declaring that "the remedy of interim bail is given to the appellant (Teesta) in the unusual conditions, including the fact that the appellant happens to be a girl." The Chief Justice of India further referred to a bail clause in the Code of Criminal Procedure CrPC that states that "being a woman is a conceivable cause for granting release, even when it cannot be considered otherwise." Section 437 of the Criminal Procedure Code addresses bail in case of non-bailable offences. According to it, a person shall not be released on bail if there is
Read more
Image
Parakram Divas: Paying homage to Netaji Subhas Chandra Bose on his 125th Birth Anniversary. ~Preet The man of utter strength and unmatched will power who was courageous enough to decide to take on one of the strongest military power on the globe in the contemporary, head on. The man who was not afraid of death and rather moved ahead to write his own fate with his charm, merit and guts. This man is none other than Netaji Subhas Chandra Bose and no wonder we celebrate the birth anniversary of this strong and influential leader as 'Parakram Divas', the day to honour and learn bravery, endurance, firmness and fearlessness.  To pay homage to him and recognise his contribution, the government recently decided to install a grand statue of Netaji Subhas Chandra Bose at India Gate. This is to commemorate his 125th birth anniversary. The government would be conducting a year long celebration in memory of Netaji.  The formal laying of foundation stone of this statue was done on 23rd of Ja
Read more