Nagaland state BJP to launch Swachhata Hi Seva

Nagaland state BJP leaders at the press conference in Kohima on September 25. (Morung Photo)

Our Correspondent

Kohima | September 25

Nagaland state BJP president and Minister for Technical Education and Higher Education Temjen Imna Along today said that as part of 103 Birth Anniversary of Pandit Deen Dayal Upadhyay, BJP Nagaland will be launching “Swachhata Hi Seva” in all the 60 constituencies including all the districts of Nagaland on September 28.

“Cleanliness is service” said Along while addressing a press conference here adding BJP Nagaland will be stressing on the disassociation from single use plastic everywhere.

He said that as part of 150th birth anniversary of Mahatma Gandhi’s campaign from October 2 to 30, the state will be joining “Gandhi Sankalp Yatra.”

He said that the commitment of the BJP legislators and the party is to reach out to most of the deepest corners of Nagaland with proactive participation to bring development and empower the unempowered in every level.

He said that the party is open to all kinds of questions not only today but in the days to come, adding that “We are committed to the development of Nagaland.”

Deputy Chief Minister Y Patton highlighted on steps taken by NAMO 2.0 to strengthen the economy in the last one month.

He said that in order to promote growth and investment, a new provision has been inserted in the Income-tax Act with effect from Financial Year 2019-20. This allows any domestic company an option to pay income-tax at the rate of 22% subject to condition that they will not avail any exemption/incentive, Patton added.

In order to attract fresh investment in manufacturing and thereby provide boost to 'Make-in-India' initiative or the Government, another new provision has been inserted in the lncome-tax Act with effect from Financial Year 2019-20 which allows any new domestic company incorporated on or after 1 October 2019 making fresh investment in manufacturing, an option to pay income-tax at the rate of 15%. This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023. The effective tax rate for these companies shall be 17.01% inclusive of surcharge & cess.

Consolidation of Centralized Banks

He said that 10 Centralized Banks has been merged into 4 Banks for the Public Sector due to which from 27 Banks in the 2017, only 12 banks are existing.

He said the existing current account and saving accounts holders have benefited a lot due to merger of banks.

 
Revised GST Rate for Public benefit

There will be no GST for room rent below Rs.1000/- and below in Hotels.

GST Rate will decreased from 18% to 12% for Hotel room rent of Rs. 1000/- to Rs. 7500/-.

From 28% to 18% GST rate will be implemented above Rs.7500/- Hotel room rent.

Upto 18% to 5% has been decreased for Outdoor Catering upto Rs.7501.

Rs. 7501 and above Outdoor catering GST rate will be same at18%.

The new rates bring India closer to the rates prevalent in many of the emerging and industrialized countries. It is similar to China (25 percent) and lower than USA (27 percent), Japan (30.62 percent), Brazil (34 percent).

New companies in India with an effective tax rate of 17% isequivalent what corporate pay in Singapore (17 percent).

 
Benefits

Reduction in tax rate means companies will have more profit and with more profits, they will be able to enhance their investments, which means there will be more business units and opening of new markets. The new units and markets will generate employment and contribute to successive GDPs.

With more profits at disposal, companies can reduce prices of their products and services, which will improve the purchasing dower of the consumers and result in more sales and more indirect taxes for the economy.

Tax cut makes the domestic market suitable for investors to start new businesses. The 15% tax rate for new companies is expected to result in significant expansion in MSME sector. The government wants to increase the contribution of MSME in the GDP to 50% in the next half decade from the current 29%, and the tax reduction is going to play a vital role in it as more people are likely to invest in the sector. 

Impact on Revenue

The tax cut, however, is expected to cause a yearly revenue loss of 71.45 lakh crore to the government. But, the present tax cut will further boost the economy and increase the tax base and tax collections.

The increased tax collection will compensate for the loss of revenue easily, Patton said.