Scrappage policy finally coming up?
As per a few emerging reports, the government is all set to introduce the vehicle scrappage policy. It has been under consideration for a long time. But now, it appears that the way is finally clear for it.
The policy is likely to be announced in the budget. It will focus on taking the old vehicles off the road and reduce vehicular pollution.
The scrappage policy will encourage vehicle owners to discard their older vehicles. The government is also likely to increase the green tax on private transport vehicles, older than eight years. Apart from that, all the government vehicles that are more than 15 years old could be taken off the roads.
This policy is awaited for a long time. Higher taxes and compulsory scrappage of old vehicles will result in massive demand for new vehicles. The policy is yet to get official confirmation. But, if implemented, it could be a major #Teji for the auto sector.
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Government narrows GST compensation shortfall :
The finance ministry has repaid Rs 78,000 crore out of Rs 1.10 lakh crore of the GST compensation shortfalls.
Till now, the government has released ~70% of GST compensation shortfall to the states and union territories (UTs). As per the finance ministry's statement, the repaid amount of Rs 78,000 crore is borrowed at an average interest rate of 4.74%.
At the time of GST implementation, revenue loss was the major concern for states and UTs. But, the center had agreed to pay compensation to states and UTs as per their revenue shortfall.
As the pandemic jolted the revenues, the center was unable to honor that commitment in FY21. It resulted in a compensation shortfall for the states and UTs.
To fulfill its commitment, the government had proposed to set up a special borrowing window to meet the shortfall of Rs 1.10 lakh crore. Currently, ~70% of repayment has been made during this window.
The great American dream:
The removal of the immigration policies of the Trump administration are one of the first things in the agenda of President Joe Biden since assuming office.
Biden has already signed several immigration-related executive orders. And reversing the decisions of the previous regime. As far as Indian immigrants are concerned, two changes from Biden hold major importance.
1) Elimination of the cap on issuing per country based green cards and
2) Changes in H1-B rules.
For thousands of Indian IT professionals, the current waiting period for legal permanent residency runs into several decades. The amendment to Green Card rules will bring that timeline down.
The withdrawal of H1-B visa rules has brought in huge relief for spouses of H1-B visa holders. H-4 visa holders as they are called. The H-4 holders have spent most of their time in fear of losing their permits under the Trump administration. Now, expected changes to the policy should allow a certain subset of H-4 visa holders to work in the US.
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