Page 14 - Banking Finance April 2019

ROUNDUP

Afghanistan sends first ex- Task force to review direct tax laws gets breather
A task force set up under the CBDT to draft a new direct tax law and replace
port consignment to India
the existing Income Tax Act has been given a three-
from Chabahar port month extension till May, an official order said. "The
term of the task force is extended by three months...
The task force shall now be required to submit its
report by May 31, 2019," a CBDT order issued read.
It was first set up in November, 2017 under the Central Board of Direct Taxes,
that frames policy for the Income Tax Department. The CBDT functions under
the Union Finance Ministry.

Manufacturing PMI hits 14-month high in Feb
The first consignment of Afghan ex- Manufacturing sector activity catapulted to a 14-month high in February after
ports to India through Chabahar port two straight months of contraction, the widely
was flagged off by President Ashraf tracked Nikkei India Services Purchasing Managers'
Ghani in a ceremony at Zaranj, Index (PMI) showed.
Nimroz province, Afghanistan.
Manufacturing PMI for February stood at 54.3, up
The ceremony was attended by the from 53.9 in January, indicating bulk orders from cli-
ambassadors of India, Iran, Turkey ents in key export destinations in February. The 50-point mark separates expan-
and diplomats of Indonesia and sion from contraction.
Kazakhstan. The commencement of
Amid reports of successful advertising efforts, supportive government policies and
Afghan exports to India through strengthening demand conditions, inflows of new work at Indian goods producers
Chabahar port in Iran has opened a continued to expand during February. The increase was the 16th in as many
new route to promote trade be- months and the most pronounced since October 2016, the PMI report said.
tween India and Afghanistan bypass-
ing Pakistan. Subsequently, job creation was sustained, taking the current spell of growth to
11 months. The upturn in employment was one of the best seen in six and a half
In December 2018, India Ports Glo- years, as goods producers sought to expand output capacities to meet strength-
bal Limited had taken over opera-
ening demand from both domestic and external sources.
tions at the Shaheed Behesti port in
Chabahar. India, Afghanistan and Cabinet okays amendments in Bill to ban unregulated
Iran had earlier agreed on the routes
of the trilateral trade and transit deposits
corridor through Chabahar. The Union Cabinet approved proposals to amend the Banning of Unregulated
Bilateral trade between India and Deposit Schemes Bill, 2018.
Afghanistan has seen a jump of over This will further strengthen the Bill in its objective to
40% in 2018-19, crossing $1 billion. effectively tackle the menace of illicit deposit-taking
On February 26, a 'Chabahar Day' activities, and prevent such schemes from duping the
business event will be held at poor, Law Minister Ravi Shankar Prasad said while
Chabahar port, said an official. "This briefing the media after the Cabinet meeting here. The
event will provide an opportunity to Bill provides for severe punishment and heavy pecuni-
India, Afghanistan, Iran and central ary fines to act as deterrent, he said.
Asian countries to explore further It has adequate provisions for disgorgement or repay-
potential of the port for promoting
ment of deposits in cases where such schemes nonetheless manage to raise
regional connectivity and trade with
deposits illegally, Prasad added. The CBI has lodged about 166 cases in the last
landlocked countries through four years in chit funds and multi-crore scams, with the maximum in West Ben-
Chabahar port."
gal and Odisha, he said.

14 | 2019 | APRIL | BANKING FINANCE