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The Hindu
6 days ago
- Business
- The Hindu
Bihar Cabinet gives nod to sign MoU with AAI to develop six small airports under UDAN scheme
The Bihar Cabinet on Tuesday approved the signing of an MoU between Airports Authority of India (AAI) and the State government for developing six small airports under the Ude Desh ka Aam Nagrik (UDAN) scheme in the State. The airports that would be developed are Madhubani, Birpur (Supaul), Munger, Valmikinagar (West Champaran), Muzaffarpur and Saharsa. The decision would pave the way for building airports and related infrastructure necessary for the development of these six airports, Cabinet Secretariat Department's Additional Chief Secretary (ACS) S. Siddharth said. The Cabinet has sanctioned initial allotment of ₹25 crore each for the development of six airports. Earlier this month, the Cabinet also reduced the rate of Value Added Tax (VAT) rate from 29% to 4% on Aviation Turbine Fuel (ATF), which would enable the aircrafts to refuel at Patna. The decision was taken to increase the numbers of flights and make the state competitive on par with neighbouring States. Last month, Prime Minister Narendra Modi had inaugurated Patna airport's new terminal built at the cost of ₹1,200 crore to boost tourism and handle one crore passengers annually. He had also laid the foundation for ₹1,410 crore civil enclave at Bihta Airport. . . The Cabinet also approved the extension of contract period for financial year 2025-26 for 1,717 Special Auxiliary Police (SAP) personnel. These SAP personnel are retired Indian Army personnel. The Cabinet also gave its nod to the transfer of 70.5 acres of land to Industries department, Bihar, Patna for the development of an industrial area. The land falls in Amnour circle of Saran district. r.
Irish Independent
05-06-2025
- Business
- Irish Independent
VAT receipts up, but corporation tax has taken a hit
The amount of Value Added Tax (Vat) collected to the end of May was €11.4bn, up €0.6bn or 5.5pc on the same period in 2024, despite the turbulence caused by US president Donald Trump's tariffs. In May, a Vat-due month, some €3.5bn was collected, which was €0.1bn more than in the same month last year. Income tax receipts in May were €2.8bn, according to the latest Exchequer returns, which was up 3.6pc on the same month last year. On a cumulative basis, €14.5bn in income tax has been collected in the year so far, up €0.6bn or 4.5pc. This reflects a scenario of almost full employment. Total tax receipts of €38.2bn were collected to the end of May, up €3bn or 8.5pc. But when the windfall Apple tax revenues are taken out, the figure stood at €36.4bn, which was just €1.3bn or 3.6pc ahead. May is considered an important month for corporation tax revenues, and €2.5bn was collected, which was down €1.1bn, or just over 30pc, on the same month last year. Receipts in May 2024 were boosted by one-off factors, however. Overall, and excluding money from the Apple tax settlement, corporation tax this year stands at €5.7bn, which is €0.6bn or 9.4pc down on the same period in 2024. Orla Gavin, head of tax at KPMG, said: 'The dip in corporation tax receipts in May, down just over €1bn on May 2024, is unexpected, given the steady performance of corporation tax payments to date this year. 'While May is a significant month for corporate tax payments, the decline may be due to the concentrated nature of taxpayers rather than a general indication of business performance owing to global trade uncertainties. The key months of June and November will be crucial in assessing whether the government's corporation-tax forecasts for the year are achievable.' Paschal Donohoe, the minister for finance, also said the most notable feature of the Exchequer returns for May was in respect of corporation tax, which he agreed had seen a 'marked' drop year-on-year. 'While this reflects once-off factors last year, it nonetheless highlights the degree of concentration in the corporate tax base, wherein a small number of multinational firms can significantly impact on the overall tax yield,' he added. ADVERTISEMENT 'In a context of unprecedented uncertainty in the international economic landscape, this serves as a timely reminder of Ireland's exposure to changes in the global trading environment, and of the vital importance of adhering to a sensible and sustainable budgetary strategy.' Total gross voted expenditure in the first five months of the year amounted to just under €42bn, up just over 8pc on last year, but €37m behind profile. Overall, an Exchequer surplus of €4bn was recorded to the end of May. This compares to a surplus of €0.8bn last year, but the comparison is again distorted by the Apple tax settlement. Once that is taken out, the underlying surplus of €0.7bn is €0.1bn behind the same period last year. The Minister for Public Expenditure, Jack Chambers, said: 'We are seeing a significant increase in capital spending in particular, up by almost a third year on year. This underscores Government commitment to tackling infrastructure gaps in our economy and society. "I am currently undertaking a review of the National Development Plan to further target investment in the critical, growth enabling areas for the rest of the decade and will be bringing this review to Government next month.'
Time of India
04-06-2025
- Business
- Time of India
Bihar cabinet clears over INR 1,800 crore in water projects, boosts education and welfare jobs
PATNA: The Bihar Cabinet, chaired by Chief Minister , approved 47 key agendas spanning over urban development, education, social welfare, infrastructure, and administrative reforms. Tired of too many ads? go ad free now This was the first cabinet meeting in about two weeks, and significant, given the wide-ranging decisions taken. Under the Urban Development and Civic Infrastructure, Phulwari and Danapur Nagar Parishads have been upgraded to Municipal Corporations. Major funding has been approved for water supply projects. For Ara, the Cabinet has approved Rs 138 crore, Rs 1,130 crore for Siwan, Rs 76 crore for Sasaram and Rs 497 crore for Aurangabad. In the Education and Social Welfare Departments, the Cabinet has approved the Buxar-Rohtas Residential School. Contract-based posts sanctioned for Bihar Jeevika Nidhi Credit Cooperative, nine posts of Krishi Seva (Agriculture Service) created, 935 posts of Assistant Education Development Officer approved and 190 posts in the Social Welfare Department. The Cabinet has also approved two amendments, including Bihar Polytechnic Education Service Rules, 2025 and Bihar Engineering Education Service Rules, 2025. The Bihar cabinet has also approved 38 posts of Assistant Land Property Officer and 15 clerk posts for the Bihar Public Service Commission (BPSC). The cabinet has also approved the establishment of the District Organising Area Officer Office in every district, and a housing project for senior police officers in Chhajju Bagh, Patna. It has also approved the dismissal of Jitendra Kumar, Drug Inspector, Patna-5 and Jatashankar Pandey, District Minority Officer, Jamui. Tired of too many ads? go ad free now The state cabinet has approved the appointment of Protection Officers for victims of domestic violence. Land in Naubatpur was granted to the Akshaya Patra Foundation (Bengaluru) to support mid-day meal services in schools. Besides, the state cabinet has enhanced the pay scale for Central Prohibition Inspectors, Value Added Tax reduction on Aviation Turbine Fuel (ATF) to boost air connectivity and approved fire safety measures under the Building Construction Department. The decisions come at a time of increasing scrutiny over state governance, especially around law and order and public service delivery.
Time of India
02-06-2025
- Automotive
- Time of India
High road tax, off-track fuel policies hitting revenue & vehicle sales in MP
Madhya Pradesh's high vehicle road tax is causing substantial revenue losses. The Federation of Automobile Dealers Association (FADA) has highlighted that customers in MP are purchasing vehicles from adjacent states with lower taxation rates. Ironically, despite repeated appeals to the state govt for tax reduction, no action was taken. MP is losing money on different types of vehicle sales. People who want fancy cars (costing over Rs. 20 Lakhs) are buying them in Chhattisgarh or Arunachal Pradesh. Why? Because the road tax is lower there. MP charges 16% road tax. FADA claimed that Chhattisgarh only charges 10%. Arunachal Pradesh has a fixed rate of Rs. 35,000. This difference is a big deal for expensive cars. Electric vehicles (EVs) and hybrid vehicles also have tax issues. The road tax on two-wheeler EVs in MP went up from 1% to 4%. People want the govt to bring it back down. Chhattisgarh and Uttar Pradesh have zero road tax on EVs. Chhattisgarh even gives subsidies of up to Rs. 15 Lakh on EVs and hybrid vehicles. This makes buying these vehicles much cheaper in Chhattisgarh, added FADA officials. Ambulance registrations are another problem. People prefer to register ambulances in Chhattisgarh. This is because MP charges 10% road tax on ambulances. Chhattisgarh has no road tax on them. This makes ambulances cheaper to register in Chhattisgarh. The way MP calculates road tax is also being questioned. Right now, road tax includes the GST (Goods and Services Tax). A suggestion was made to calculate the tax before GST is added. This would lower the amount of tax people pay. MP has a great location in the middle of India. This could make it a big logistics hub. The govt could offer incentives to car companies. This could help them deliver cars faster. It could also create more jobs in MP, said FADA officials. Fuel taxes are also a problem. MP has some of the highest VAT (Value Added Tax) rates on fuel in India. Because of this, truck drivers and others often fill up their tanks in other states. This means MP loses out on tax money. It also makes fuel more expensive for people who live in MP. The govt needs to take these issues seriously to "prevent tax revenue losses." It will help to "reduce the financial burden on MP's population." By fixing these tax problems, MP can keep more money in the state. FADA MP raised four crucial concerns. "These include advocating for lower road tax rates in MP, seeking a reduction in fuel VAT, highlighting MP's potential as a logistics hub due to its central location, and addressing the incorrect practice of road tax calculation on GST," said Chairperson FADA Madhya Pradesh , Ashish Pande. He added, "It's worth noting that MP's sales performance was significantly lower than the national average over the past 4 months, resulting in reduced revenue collection for the state, both in terms of GST and road tax. This needs immediate attention from the state govt." Transport department officials did not respond to the calls made to them.
IOL News
25-05-2025
- Business
- IOL News
Godongwana's path to austerity deepening poverty, inequality
Finance Minister Enoch Godongwana presented the National Budget in Parliament for the third time on May 21, 2025. While it is a welcome relief that the proposed VAT hike was ultimately scrapped, its replacement with deep spending cuts is no cause for celebration, says the writer. Image: Armand Hough / Independent Newspapers Reneva Fourie On 21 May, Parliament finally adopted the national budget after months of contention, heated debates, and public pushback. The initial two drafts, presented on 19 February and 12 March, did not gain the requisite political backing, resulting in an unprecedented Budget crisis for the country. The most controversial proposal involved increasing the Value Added Tax (VAT) by half a percentage point on 1 May 2025 and another half percentage point on 1 April 2026. The proposed increase in VAT sparked strong protests from civil society, labour unions, and political parties. In response to this widespread opposition, the government had to rethink its approach and revise the national budget. When comparing the original budget presented in March to the updated version adopted in May, some significant changes stood out. The planned VAT increase was cancelled, which many welcomed. However, this decision came with its challenges. Instead of finding new ways to raise money such as taxing the top one per cent of the country's wealthiest, reducing a bloated cabinet, or accelerating efforts to improve state efficiency, the government introduced further austerity measures. The March budget allocation for public spending was significantly reduced, with the most affected sectors being health, education, defence, and social development, four critical areas already under intense pressure. These reductions occur as the general fuel levy is scheduled to increase by 16c/l for petrol on 4 June, while diesel will rise by 15c/l. These funding allocation cuts come at a time when the country really can't afford them. South Africa's public services have been in decline for years. Since 2020, repeated budget cuts have eroded the quality of basic services. Schools are overcrowded, poorly maintained, and lacking in basic teaching resources. In the health sector, clinics are chronically understaffed and understocked. Nurses and teachers are overwhelmed and demoralised. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Furthermore, the US government has decreased the money it provides through an initiative called PEPFAR, which supports efforts to fight HIV and AIDS. This reduction threatens the programmes that have saved many lives over the past twenty years. Many clinics are already experiencing shortages of critical medications and are doing fewer tests to monitor patients' health. When the government tightens its budget for health, the situation is likely to get even worse. This funding gap highlights the growing weaknesses in South Africa's public health system. In terms of defence, these allocation cuts will likely impact diplomatic initiatives, military-related projects, and participation in collaborative security efforts with allies. The reductions in the budget for this sector have significantly hindered the country's ability to uphold its commitments in the region. South African peacekeeping troops are in increasingly difficult situations with no air defence support. Without enough resources, their morale and ability to perform their tasks are declining. Additionally, the decreased funding could limit the country's capacity to adequately address and mitigate potential security threats at home. Perhaps most disturbing are the allocation cuts to social grants. The Social Relief of Distress Grant has served as a lifeline for millions of poor South Africans, particularly in the wake of the COVID-19 pandemic and the continued high levels of unemployment. Reducing allocations to social development in this context is not just shortsighted; it borders on cruelty. It ignores the daily realities of poverty, hunger and economic hardship faced by millions. The root of this crisis lies not in a lack of funds but in how those funds are prioritised and managed. Instead of ensuring that wealthy individuals contribute their fair share or expand the revenue base by creating jobs, the state keeps leaning on budget cuts. These strategies to control spending haven't worked. They haven't lowered the level of debt, and they haven't helped the economy grow. What they have done is deepen poverty, worsen hunger and drive unemployment even higher. While it is a welcome relief that the proposed VAT hike was ultimately scrapped, its replacement with deep spending cuts is no cause for celebration. Indirect taxes like VAT hit poor households the hardest. But slashing social spending to make up for the cancelled increase is just another blow to families who are already struggling. Almost half of South Africa's working-age population is unemployed or engaged in precarious, low-paying work. At the same time, one in five children goes to bed hungry each night. Yet the government continues to push ineffective fiscal policies disguised as reform favouring deregulation and the growing privatisation of essential services. The result is the gradual weakening of public institutions while private companies step in to fill the gaps for profit. This shift undermines the public sector and erodes the principle of universal access to essential services such as water, energy, education and healthcare. These services should be public goods, not business opportunities. These policy interventions represent a systematic and calculated assault on the livelihoods of poor and working-class individuals. By favouring the interests of the wealthy and prioritising corporate profits, these measures undermine essential support systems and resources that vulnerable communities rely on. As a result, the economic divide widens, exacerbating the struggles those already marginalised face. Ironically, there is room to manoeuvre even within the current fiscal framework. The South African Revenue Service has recovered about R95 billion in 2024/25. While this is a positive development, it highlights a deeper issue. There are still billions of rands in tax revenue that go uncollected every year. This is due to widespread tax evasion, insufficient enforcement capacity at SARS, and aggressive tax avoidance by large corporations. SARS estimates that, based on the improved capacity and efforts to tackle illicit financial flows on the back of the investments being made, it could recover at least R120 billion during the current financial year.
