Bonjour, perpetually perusing mortals !
I know .. some inclinations persist perpetually ;) Never ever attain cessation ! Incessant perusal addiction rocks !! Perpetually .. be stimulated !!
LoL ! Sarcasm was not necessarily in context of thou blog perusal habit ! Well .. not necessarily!
Well .. Last week .. no blogs .. well .. Indian weddings .. you know .. this ought suffice the rest as a corollary :)
Well .. my ingrained blogger albatross, despite still enduring party blues at worst, has been prompted by some fiscal, though apparently, perturbing developments, atleast to me, personally ! Glide on !
Financial express today jolted my mailbox (& my wedding party blues) – via this fiscal offensive alert:
CBDT recently rolled out draft proposals for phasing out tax exemptions/incentives; the draft has been put out for public comments. The key highlights of the proposals are:* Profit-linked, investment-linked and area-based deductions will be phased out for both corporate and non-corporate taxpayers.* Businesses/activities having a sunset date will not be modified to advance the sunset date. In the case of tax incentives with no terminal date, a sunset date of March 31, 2017, is proposed to be provided either for commencement of the activity or for claim of benefit, depending upon the structure of the relevant provisions of the I-T Act.* The peak tax depreciation rate will be reduced from 100% to 60% for existing and new assets from April 1, 2017.
To my comprehension, aforesaid fiscal proposals seem apparently flawed, indulging in attributing some inconceivable economic rationale – from the fiscal jurisprudence principles or economic perspective !
In my advisory assignments, specially in global investment bank, of pharmaceutical corporations, specially Indian, all pharma corporations have invariably been on the applauding side – of the critics – towards the Indian fiscal jurisprudence – attributing the applaud to the rational & various enhanced fiscal incentives – like Section 35 AB etc – to inhouse research development activities – which is conducive to their global competitive edge – vs their global counterparts – in the era of rapidly enhanced technology systems in health sectors.
Consequently, aforesaid proposal seems a severe jolt to the anticipated enhanced investments in various research driven sectors, especially pharmaceutical, & to Indian global competitive edge, in case such fiscal proposals are implemented in the finance bill. On one hand, India preaches – being conducive to domestic value addition principle, however, on contrary, rebuts the same, by discouraging local research activity. Inconceivable rationale !
Worst intellectual jolt has been to witness the first proposal! Sunset clause to all investment-linked fiscal abatement!
The single & most effective fiscal tool, I perpetually applauded, has been – attributing the fiscal abatement – to the consequent economic contribution ! Instances of this prudent fiscal principle – are – likes of Sections 10A, AA, 80-IA, IB, IE etc. If any fiscal provision could boast off – in possession of the most concrete visibility of any fiscal initiative – that would be aforesaid para mentioned ones. Hence, consequently, worse is the dismay. The immediate outcome of Section 80-IE was visible – being emergence of sustainable economic activity in remote / under-developed tourist destinations, consequent job stimulation & economic growth.
Well .. aforesaid proposals would render mere despair in those – who were rightly anticipating – fiscal abatement – as a function of – investments or contribution to economic activity or initial value enhancing startups (crucial for economic stimulation), & rather be conducive to a perception of irrational fiscal abatement policy in India.