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Jaipal Reddy wants Rs 80,000 additional tax on diesel cars
- The oil minister on Friday formally proposed to finance minister to slap an additional excise duty of Rs 80,000 on diesel vehicles in the Union Budget, a move that is bound to be opposed by the automotive industry and the department of heavy industries.
- The idea of additional excise levy has been tossing around in the oil ministry since 2008-09 as a way of raising funds to at least partially meet the Centre's burden on subsidizing diesel.
- But the idea never made it to the formal discussion table since it was felt that the funds garnered would not be significant in view of the massive size of the fuel subsidy burden.
- The fuel consumption pattern and diesel demand growth outstripped petrol for the first time in 15 years last year
- This has strengthened the concerns over dieselization of the economy, and added teeth to the demand for additional taxes on diesel vehicles from the green lobby.
- Reddy also sought a 10-year tax holiday for oil and gas hunting companies and new refineries as well as removal of 5% import duty on gas imported in ships.
- In his bid to promote clean energy, Reddy also sought 'declared goods' status for domestic and imported natural gas so that the environment-friendly fuels attract a uniform sales tax of 5% instead of current system of varied tax rates - ranging from 12.5% in Gujarat and Maharashtra to 20% in Assam.
The 'Global Emerging Middle' class
- Slowdown in mature economies is making companies globally look at the ‘next 4 billion’ nations for growth. These nations, with an average per capita annual income of between $1,000 and $4,000, and home to four billion people or more than half of the world’s total population of seven billion include China, India, Indonesia and Latin America countries in Africa.
- Businesses which have traditionally focused on the ‘middle’ and ‘upper middle plus’ income tiers are now shifting their focus to the ‘Global Emerging Middle’ (GEM) — which lies just below the middle segment constituting a significant, expanding and largely untapped market, says a research by PricewaterhouseCoopers on: Profitable growth strategies for the Global Emerging Middle.
- The Global Emerging Middle (GEM) already accounts for 2.3 billion people globally
- GEM will represent a combined annual market in excess of $6 trillion by 2021
A $1 trillion opportunity in India awaits companies: PwC
- PricewaterhouseCoopers (PwC) said India's middle class will grow in size to become a $1 trillion opportunity to be tapped for various consumer- oriented industries.
- The country's total population will be around 1.36 billion by 2021 of which middle class will account for 570 million. The demographics will result in higher aspirations which will have to be served by companies
- Companies in the retail and consumer goods, telecom, financial services, industrial products, and healthcare and pharmaceuticals space can benefit from this opportunity
- Even though Asia's third-largest economy will urbanise faster, a majority of the demand for this $1 trillion opportunity will come from the rural areas
