Net direct tax collections soar
New Delhi: The Centre's net direct tax collections have risen by 41.55 per cent in April 1-December 15 period to Rs1,09,000 crore as compared to Rs77,000 crore collected in the same period last year, representing about 52 per cent of the budget estimate of Rs2,10,684 crore for direct taxes in 2006-07.

In fiscal 2005-06, the centre's direct tax collections stood at Rs1,65,208 crore. The direct tax collections in 2004-05 stood at Rs1,32,771 crore.

Meanwhile, an official spokesperson of the Central Board of Direct Taxes (CBDT) said that the collections of Rs1,09,000 crore do not include the December 15 instalment of advance tax, which is an important instalment for the tax department.
Back to News Review index page  

New norms for FDI on security concerns
New Delhi: The government is planning to bring in a stipulation that will enable action against foreign companies if they are found to be involved in activities that are against national security.

The department of industrial policy and promotion (DIPP), the nodal agency for FDI, has suggested that a clause to the effect can be included while providing clearance for foreign investment.

Foreign companies could also be asked to submit a declaration that they will not undertake any activity that undermines the country's national security.

The proposals are in response to suggestions of the National Security Council (NSC) that has called for measures to check threat to the country's security from FDI.

The proposals of the council were circulated to various ministries by the prime minister's office (PMO), and DIPP has responded with a set of initiatives that could take care of security requirements without discouraging FDI.
Back to News Review index page  

Cabinet nod to sugar exports
New Delhi: The Union Cabinet has partially lifted the ban on sugar exports, by allowing companies with export obligation under the Advance Licence (AL) scheme to undertake exports.

However, it was not disclosed when the companies can start their export shipments. A notification to this effect is expected shortly.
Further review of the situation would be made before the ban is completely lifted.

On July 4, the government had banned export of sugar till March 31, 2007 after the recommendation of the cabinet committee on Prices.

The decision to ban the export was also applicable to the companies with export obligation against duty-free import of raw sugar under the AL scheme.

Renuka Sugar, Dhampur Sugar, Sakthi Sugar, Simbhaoli Sugar, Eid Parry and Thiru Arooran among others had imported about 26 lakh tonne of raw sugar between 2002-03 and 2004-05 seasons (October-September) under the Advance Licence scheme.
Back to News Review index page