The President has summoned the Rajya Sabha to meet on Thursday

Press Information Bureau

Government of India

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Press Communique

 

 

The President has summoned the Rajya Sabha to meet on Thursday, the 19th November, 2009, at New Delhi.  Subject to exigencies of business, the Session is scheduled to conclude on Monday, the 21st December, 2009.   

 

 

Parliament of India, Rajya Sabha Secretariat

New Delhi, Kartik 14, 1931; November 05, 2009

 

 

SP/AS/spandey

 

 

Press Information Bureau

Government of India

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Government discussing suggestions of stakeholders to modify Direct Tax Code: FM

AREAS OF CONCERN IDENTIFIED

FINANCE MINISTER ADDRESSES PARLIAMENTARY CONSULTATIVE COMMITTEE OF FINANCE MINISTRY

 

New Delhi, Kartik 14, 1931

November 05, 2009

 

Government would make all efforts to meet the  aspirations and expectations of  the taxpayers and the corporate sector before finalisation of the Direct Tax Code.  The next steps in this  direction  would  be taken only after a comprehensive review of the draft Direct Tax Code by taking on board the suggestions received.  This was stated by the Finance Minister, Shri  Pranab Mukherjee while addressing the first newly constituted Parliamentary Consultative Committee attached  to his ministry  here yesterday.  He said we are trying to bring the new taxation regime, which can last for another 50 years.  Therefore, our endeavor is to see that new taxation system should include the basic features and time tested procedures of existing act, which have survived judicial security over the years, he added.

 

Shri Mukherjee said that he has started discussions within the Central Board of Direct Taxes on the suggestions received so far.  The outcome of the discussion would be used for modifying the proposals contained in the draft Direct Tax Code.

 

The Finance Minister said while the initial reaction has been very encouraging, more detailed examination and interaction with stakeholders is throwing up some areas of concern.  On the basis of interactions with the stakeholders, Government  has identified nine critical areas for further detailed examination.  These relate to  (i) The concept of Minimum Alternative Tax (MAT) based on gross assets;  (ii) Capital Gains Taxation in the case of non-residents; (iii) The Income Tax Act and the Double Taxation Avoidance Agreement (DTAA); (iv) General Anti-Avoidance Rule (GAAR); (v) Issues relating to effective management control and taxation of foreign companies in India; (vi) Taxation of charitable organizations;  (vii) Shift from EEE to EET taxation system;  (viii)Taxation of income from house property in case of Self-Occupied Property (SOP) by the individual; and (ix) Taxation in case of salaried class employees.

 

Shri. Mukherjee informed the meeting that the draft Tax Code has following new features:

 

(i)                   The rate of slabs for personal income tax in the case of individuals are as under:

 

Rs. 1.6 lakh to Rs. 10 lakh

 10%

 

Rs. 10 lakh to Rs. 25 lakh 

 20%

 

More than Rs. 25 lakh       

 30%

 

This proposed slab rates for personal Income Tax would put more money in the hands of consumers;

 

(ii)                 The rate for Corporate tax for companies is 25%;

 

(iii)               Proposal for advance pricing agreement in respect of arm's length in relation to an international transaction.  The Advance Pricing Agreement (APA) will provide certainty in cross border transactions with taxpayer and it will facilitate in investments in India.  Industry has been demanding for introduction of APA in India for quite some time.  This proposal is in line with the best global practices adopted by many countries across the globe.

 

(iv)              Rationalization of deductions and exemptions for streamlining the administrative processes and also to reduce the rent seeking behavior and

 

(v)           Proposal for General Anti Avoidance Rules (GAAR) to check the treaty misuse by the third party residents.

 

Shri. Mukherjee said that it has been our endeavour to incorporate the best practices prevailing across the globe and to use innovative methods for attaining equity—vertical and horizontal, ensure growth with sustainability, create stable fiscal eco-system and have well regulated free markets in the Draft Tax Code. We want to present the stakeholders with a tax regime which is simple and broad based leading to lowering of tax rates, better tax compliance, reduced litigation certainty and stability in taxation system, added the Finance Minister.

 

The meeting was attended by S/Shri Shantaram Naik, Rahul Bajaj, Rajeev Chandrasekhar, Sabir Ali, Mukut Mithi, Rajeev Shukla, N.K. Singh, and Tariq Anwar - members of  Rajya Sabha  and  S/Shri Narahari Mahato,  Partap Singh bajwa,  Bhausaheb Rajaram,  Vijay Inder Singla, Mukesh B. Gadhvi, Arvind Kumar Chaudhary  Natubhai Gomanbhai Patel,  Suresh C. Angadi,  Prabhat Singh Chauhan, T.R. Ballu, and  Smt. Rajkumari Ratna Singh - member of Lok Sabha.  Minister of State for Finance Shri  S.S. Palanimanickam, Revenue Secretary, Expenditure Secretary, Disinvestment secretary and  other senior officers the ministry attended the meeting.    

 

BSC/KP/366/09/spandey

 

 

 

 

 

 

 

 

 Press Information Bureau

Government of India

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BACKGROUNDER           

         

National Meat and Poultry Processing Board

 

About NMPPB

 

 

The Government of India launched a National Meat and Poultry Processing Board, an autonomous body on 19th Feb 2009. The Board would initially be funded by the Government of India for two years and would be managed by the industry itself. This apex body is launched to work as a National hub for addressing all key issues related to Meat and Poultry processing sector for the systematic and proper development of this sector. "The Board would serve as a single window service provider for producers/manufacturers and exporters of meat and meat products, for promoting & regulating the meat industry, as a whole and it would result in large number of employment opportunities. It would also help the rural farmers for increasing their income. The Board will also help industry to utilize slaughterhouse waste materials, set up quality control laboratories for meat and meat products, promote meat manufacturers to adopt Good Manufacturing Practices (GMP), Hazard Analysis and Critical Control Points (HACCP) systems, ISO-9001: 2000 standards, help industry to create and disseminate data, train workers and technicians and work as a central and National hub to address meat-related issues.

 

 

The Meat and Poultry Sector in India

 

Inspite of big potential due to its large livestock population the meat industry in India has not taken its due share. Although India has acquired number one status in the world contributing around 15% of world's milk production during 2007-08, the meat production, which vibes well with dairy, is very low. Meat production is around 2% of the world meat production.

 

The processing status is one of the major key issues of concern in the meat sector of India.

 

Quality and hygiene levels are very low along with tremendous waste of meat, contamination/deterioration of meat and also the avoidable cruelty to the animals.

 

It is believed that the Indian Poultry Industry is 5,000 years old, since last 4 decades it began to witness remarkable growth from backyard to poultry industry. 

 

The organized sector of poultry industry is contributing nearly 70% of the total output and the rest 30% in the unorganized sector. The broiler industry is well dominated in southern states in our country with nearly 60-70% total output coming from these states. The layer industry once again is represented more in southern states especially, Andhra Pradesh, Tamil Nadu and Maharashtra producing nearly 70% of the country's egg production. India's 75% of egg produce is consumed by the 25% population living in urban and semi-urban areas. Presently about 800 hatcheries are operating in the country.

 

India has emerged as the only country in the developing world a self-reliant, technology driven industry, with capability to produce every essential input for successful poultry farming including indigenous genetic resource and breeding, world class poultry vaccines and medicines, specific pathogen free eggs (SPF), farms and hatchery automation systems, pelleted feed, egg processing, poultry processing, nationwide network of disease diagnostic laboratories and facilities for entrepreneurial development and training in both private and public sectors.

 

Rural poultry production constitutes important component of agricultural economy in India, small poultry holder are practically capable of more significant contribution to alleviate malnutrition, poverty and unemployment. A spectacular progress has been made from subsistence to sustainable production system. Indian backyard population increase is only by 16% in the last 30 years from 60 to 70 million. China's 76% of total egg comes from rural backyard production. India requires both mass production as well as production by masses.

 

India produces 3.6% of global egg production, i.e., 61 million tonnes. The annual growth rate of egg is 5 to 8%. India has the lowest cost of egg production in the world at 2.55 US cents per egg.

 

However, the poultry production and consumption in the domestic market is slated to grow. Indian poultry industry has been a major contributor to the food-processing sector in the country. From backyard activity to major commercial operation the poultry sector has undergone a paradigm shift.

 

            Presently 100% Foreign Direct Investment (FDI) is permitted in the food processing sector. Also FDI in food retailing, covering dairy, poultry, marine, vegetables and fruits might help the entire food processing industry grow. Poultry farming in India has transformed from a mere tool of supplementary income and nutritious food for the family to the major commercial activity generating the required revenue. The growth of the industry with steady production of 1,800 million kg of poultry meat, 40 billion egg per year and employment generation of about 3 million people indicates the future prospects for the industry. Changing food habits, rising income of the middle class Indian, presence of private players, rising market demand of the Indian poultry produce in the export market are some of the contributing factors to the growth of the industry.

 

Even though India has abundant availability of raw material and vast network of manufacturing facilities all over the country as well as manpower with expertise, still the low availability of adequate infrastructural facilities, inadequately developed linkages between R&D labs and industry and unawareness about hygienic practices the Indian Meat and Poultry Market stands at a low position in respect to the global markets.

 

The Ministry is exploring the opportunities like setting of mega food parks, modern abattoirs, improvised processing units, providing added incentive to develop existing projects while taking care of the changing consumption patterns The integration of development in contemporary technologies such as electronics, material science, bio-technology etc. offer vast scope for rapid improvement and progress and opening of the global markets 

 

VLK/ska/spandey

 

 

 

 

 

 

 

 

 

 

 

 

 

 Press Information Bureau

Government of India

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Office of Economic Adviser

Ministry of Commerce & Industry,

 

Wholesale Price Index for 'Primary Articles' and 'Fuel, Power, Light & Lubricants' (Base: 1993-94=100)Review for the week ended 24th October, 2009 (02 Kartika, 1931 Saka

 

New Delhi, Kartik 14, 1931

November 05, 2009

 

As per the decision of the Cabinet Committee of Economic Affairs (CCEA), the weekly release of Wholesale Price Index will henceforth cover only the Primary Articles and commodities in the broad group "Fuel, Power, Light & Lubricants".  Monthly WPI covering all commodities will be released for the month of October, 2009 next week (November 12, 2009).

 

The WPI for the week ending October 24th, 2009 in respect of Primary Articles and commodities in the broad group "Fuel, Power, Light & Lubricants" is given below.

 

PRIMARY ARTICLES (Weight 22.02%):

 

The index for this major group declined by 0.1 percent to 273.0 (Provisional) from 273.3 (Provisional) for the previous week.

 

The annual rate of inflation, calculated on point to point basis, stood at  8.94 percent (Provisional) for the week ended 24/10/2009 over (25/10/2008) as compared to 8.67 percent (Provisional) for the previous week (ended 17/10/2009) and 11.73 percent during the corresponding week (ended 25/10/2008) of the previous year.

 

The groups and items for which the index showed variations during the week are as follows:-

 

The index for 'Food Articles' group declined by 0.3 percent to 277.7 (Provisional) from 278.4 (Provisional) for the previous week due to lower prices of fish-marine (3%), fruits & vegetables (2%) and barley and jowar (1% each). However, the prices of moong (3%), wheat and bajra (2% each) and condiments & spices and gram (1% each) moved up.

 

The index for  'Non-Food Articles'  group rose by  0.2  percent to  236.3 (Provisional) from 235.8  (Provisional) for the previous week due to higher prices of raw silk  (6%), raw rubber  (3%) and castor seed, rape & mustard seed, raw cotton and copra (1% each).  However, the prices of raw wool (6%) and linseed and groundnut seed (1% each) declined.

 

FUEL, POWER, LIGHT & LUBRICANTS (Weight 14.23%)

 

 The index for this major group remained unchanged at its previous week's level of 344.9 (Provisional). 

 

The annual rate of inflation, calculated on point to point basis, remained unchanged at its previous week's level of (-) 6.20 percent (Provisional) for the week (ended 24/10/2009).  It was 13.59 percent during the corresponding week (ended 25/10/2008) of the previous year.

 

Inflation for important commodities in these two groups is indicated in Annex-I.

 

Next date of press release: 12/11/2009 for the week ending 31/10/2009

 

This press release is available at our home page http://eaindustry.nic.in

 

SC/spandey