The Centre has decided to roll back the ‘super rich’ tax on foreign investors that it had introduced in the Union Budget to give a boost to the sagging economy, finance minister Nirmala Sitharaman announced at a press conference on Friday.
Sitharaman had proposed increasing the effective tax rate on individuals with taxable annual income of above 20 million rupees ($283,000) by about 3%, and for those earning above 50 million rupees by 7%. Plans to exempt Foreign Portfolio Investors, who became an unintended target of the move, was first reported earlier this month.
Sitharaman announced that along with the withdrawal of additional levy on FPIs, enhanced surcharge levied on long term and short term capital gains on equities will also end.
- All pending GST refunds to be paid within 30 days to all MSMEs. Future GST refunds to be sorted out within 60 days. MSME Act will ensure one standard definition for MSME, doing away with all complications.
-Additional capital of Rs 70,000 crore has been sanctioned for banks, which will enable loans worth Rs 5 lakh crore, said FM Sitharaman
- CSR violations will not be treated as a criminal offence but as civil matter. Government says it has no intention to go the prosecution route
- More credit support for purchase of homes, vehicles and consumption goods. Additional liquidity support to housing finance companies by National Housing Board increased to 30,000 crore from 20,000 crore.