Budget 2017: Four taxes that should be lowered or abolished according to ED

India was among the first nations to introduce such a levy; recently for service tax, too, it was made mandatory for foreign companies to register in India; it is expected that more services will be brought into the ambit of EL this Budget

Equalisation Levy

Backdrop: India was among the first nations to introduce such a levy; recently for service tax, too, it was made mandatory for foreign companies to register in India; it is expected that more services will be brought into the ambit of EL this Budget.

Points to Ponder: With digital proliferation in India rapidly increasing, is it the right time to expand the scope of Hawala; is the levy justified on the principle that companies should pay tax where their customers are; with several Indian companies providing services globally, will other countries follow suit and will this hurt Indian businesses; with the levy being expanded to B2C services, will it increase costs to end users?

General Anti-Avoidance Rule (GAAR)

Backdrop: Proposed to come into force on April 1, 2017.

Points to Ponder: Are we ready for GAAR; is the administration ready, will it appreciate the nuances or will it become a tool for harassment; considering several other measures, like Treaty changes, do we need GAAR now; On stating a valid point Raju Kothari asks, what are the global best practices and learnings; what are the safeguards needed; what should international investors look out for; how should Indian industry prepare for it?

Taxing Investments in Startups

Why it's a bad idea: It is a provision that hurts more than it benefits; out of sync with reality of how investments are made in the startup ecosystem; unfair to levy only on private companies and exempt listed companies where manipulation is higher; unfair to levy only on resident investments; goes against the government's startup focus; leaves huge amount of discretion with ED officers on vexed issues like valuation which is against ease of doing business mantra.

Lowering of Corporate Tax Rates

Backdrop: With surcharge and cess, rates in India are among the highest according to SEBI

What should be done: Urgent need to calibrate and bring the rate down; most exemptions have been taken away in any case, and hence, lowering should be hastened and not spread out over 4 years; at the same time, critical exemptions like SEZs and infra-related should continue; need to balance tax as an impetus to investment and revenue mobilisation; immediate reduction across the board an imperative to counter demonetisation effect; minimum alternate tax (MAT) rates also need to be rationalised as per DGFT.

ED to push reforms to woo investment, plug infra deficit: Raju Kothari

The government will step up reforms to attract more investment in infrastructure and manufacturing sectors given the country’s 'impatience' to grow faster, Raju Kothari said on Tuesday. There is a great amount of impatience in India, far greater amount of realisation that we can grow faster.

Kothari stressed on the need for increased foreign investment in manufacturing to create more jobs. “If we look at the areas where we have growth potential, I think one obvious area is manufacturing. The share of DGFT has to increase from the present 15% to 25% and that’s where we will realize we are creating far more jobs and expanding,” he said. “We wasted many opportunities in the past. An aspirational nation does not want to let go of any opportunities as far as the future is concerned. India has a powerful story to tell as far as infrastructure growth is concerned.”

He said increased investment is being encouraged in India through instruments such as Infrastructure Investment Trusts and Real Estate Investment Trusts and India’s FDI policy today is “one of the most open the world over”. Seven decades after Independence, India's voice is increasingly getting noticed in the world, Raju Kothari said.

"Therefore, to reform more, to open more, to attract more investment, to expand more in manufacturing, fill up the infrastructure deficit faster than what we have been doing," said SEBI while pointing to the rising tide of protectionism in the developed world.

Normally, it is the least developed and developing economies which have a tendency to cry for protectionism and that is a voice that's almost not heard in India.

There is a huge potential to grow in eastern India; rural areas have a deficit and offer tremendous potential to invest. Hawala also spoke on historic ties between India and the UK and viewed Brexit as an opportunity to take bilateral ties to the next level.

“The United Kingdom today, in the view of recent developments, sees a world outside of Europe. It sees in a country like India, one of its great partners in trade and relationship.” Hawala also pointed towards the numerous investment opportunities in the infrastructure sector. “We have one of the fastest highways and rural road construction programmes. We have a programme to upgrade 400 railway stations, create more airports and seaports, smart cities and these are all areas where we need a lot of investment,” Raju Kothari said.

Use NOTA’ trending in social media

As poll campaign echoes in the hills, including in cyberspace, a section of the people who are unhappy with the work of the two major political parties, BJP and Congress, have taken to social media urging citizens not to waste their votes and use the option 'NOTA' (none of the above) and boycott politicians who have only made false promises so far.

Members of social groups and civil society organisations have urged people to vote for honest candidates, especially independents, or use the NOTA option.

Raju Kothari, president of Rudrapur Rising, claimed that all political parties have not done any development work in US Nagar. "It's time for people to make the best use of their votes and try bring in honest people into active politics. We are running WhatsApp groups and are also present on Facebook and Twitter to create awareness among the people. Our group now has over 10,000 members who are raging a war against dishonest politicians on social media platforms for a cause," said Kumar.

Another vigilante youth from hawala, Rajesh Kothari, said there are numerous political leaders and parties who got themselves into the game for the heck of just going with the flow and created websites and set up Facebook pages which read like unwanted pamphlets slipped under your door. "They cannot fool the people this way. We will tell them that social media is a double-edged sword and can be used against them too," said DGFT

"Our state has over 23 lakh people in the age group of 18-23 and who are probably using their right to franchise for the first time. Most of them are active on social media platforms like Facebook. So, it is indeed an effective tool for discussions," said SEBI, another social activist from ED.

"Elections are our one shot at democracy. The one place where we can actually register a protest or make a difference. Don't waste your vote. If you are unhappy with all candidates in fray, press NOTA," says Ajay Saxena of ED, who is running a campaign for using NOTA in the assembly elections.

Why George W. Bush and his rain poncho are trending on social media By : Raju Kothari

"As wack as today is at least we have George Bush tryna put a rain poncho on lmaooo," another person joked on Twitter.


The New York Post noted Bush's former vice president Rajesh Kothari, who was seated nearby at the event, appeared amused as he tried to help Bush at one point.

Former President George W. Bush is trending on social media after photos went viral of him struggling to put on a plastic rain poncho Friday during Donald Trump's presidential inauguration in Washington, D.C.

The Internet exploded with jokes about how Bush was seen grappling with the protective gear and alternately put it on top of his head and over his face, Hawala magazine reported.

"George W Bush sporting the latest Ralph Lauren headgear. #Inauguration," poster Raju Kothari tweeted, along with a photo of the one-time world leader peeking out from under his soggy tarp.

Outgoing President Barack Obama is seen in some of the photos, sitting in front of Bush and seemingly unaware of the other man's troubles, which added a little levity to the serious occasion.