Government rolls back surcharge on foreign investors

The government will withdraw enhanced surcharge on long or short-term capital gains arising from the transfer of equity shares/units.

Published: 23rd August 2019 06:03 PM  |   Last Updated: 23rd August 2019 06:53 PM   |  A+A-

Union Finance Minister Nirmala Sitharaman addressing the press conference. (Photo | Shekhar Yadav)

By Online Desk

Union Finance Minister Nirmala Sitharaman addressed a press conference amid growing concerns over the economic slowdown in the country.

Moody's Investors Service had earlier in the day revised downwards India's GDP growth forecast for the current year to 6.2 per cent, saying the economy remains sluggish due to a combination of factors such as weak hiring, distress among rural households and tighter financial conditions.

ALSO READ: FPIs pull out Rs 8,319 crore in August amid persisting negative sentiment​

The GDP growth forecast for 2019 calendar year was revised downwards from its previous estimation of 6.8 per cent.

Here's a quick look at what Sitharaman said in the press conference:

  • In order to encourage investment in the capital market, it is decided to withdraw to enhance surcharge levied by the Finance No. 2 Act 2019. In simple words, the enhance surcharge on FPI goes, the surcharge on domestic investors in equity goes. 

  • There will be faceless scrutiny from 'Vijay Dashmi' this year, which will mean that there shall not be even, that one odd over-enthusiastic officer who might go and sit & talk about things, which may be construed as harassment

  • Banks have now decided to pass on any rate cut through MCLR reduction to benefit all borrowers. This will result in reduced EMIs for housing loans, vehicles & other retail loans, by directly linking repo rates to the interest rates

  • Banks have decided to pass on any rate cuts through the Marginal Cost of Funds based Lending Rate (MCLR) to all borrowers

  • All old tax notices will be addressed by 1st of October or uploaded on the system again, to increase transparency

  • Corporate Social Responsibilities violations will be treated as civil liability and not criminal offences.

  • All pending GST refunds due to MSMEs till now shall be paid within 30 days from today

  • In future, the GST refunds to MSMEs will be paid within 60 days

  • Ban on purchase of vehicles by government departments lifted. BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration

  • Next week the government will come with one more set of the announcement. You may expect us to talk to you twice more in the near future

  • Inter-Ministerial Task Force is being formed by DEA to finalise pipeline through which various infra projects will get funded; projects to be monitored actively to accelerate capital expenditure and investment in the economy

  • Upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation

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