Current Affairs 07/11/15

Cess on services and air travel

0.5% cess on services to support Swachh Bharat

·         The government announced Swachh Bharat cess at the rate of 0.5% on all services liable to service tax.

·         Swachh Bharat cess is in line with the announcement made in Union Budget for 2015-16.

·         The government estimates that Swachh Bharat Abhiyan will be able to prevent diseases and hence will reduce the stress on the health sector.

·         At present, an estimated Rs.6,700 crore or about Rs.60 per capita is spent annually on health.

2 % cess on air fares to support regional connectivity

·         2% cess will be levied on air fares on all international flights as also those between metros and big cities.

·         This 2% cess will be used for the creation of the regional connectivity.

·         The scheme provides for viability gap funding (VGF) for operations of small aircraft to small towns with a fare cap of Rs. 2,500 per hour of flying.

Worsening unemployment scenario

·         Ten million Indians (15% of all Indians) with the highest levels of education were unemployed as of 2011.

·         Kerala had India’s highest graduate unemployment rate at over 30 per cent.

·         Unemployment rates were higher among the better qualified.

·         At all levels of education, unemployment rates were higher in rural than in urban areas.

·         At every level of education female unemployment exceeded male unemployment.

·         Overall, India’s unemployment rate grew from 6.8 p.c. in 2001 to 9.6 p.c. in 2011, based on official Census data.

Trans Pacific trade pact text triggers fresh debate in U.S.

·         TPP will cover 40 per cent of the global commerce, and will ease trade among the participant countries — Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam.

Proponents (From US perspective)

·         It will eliminate taxes that various countries put on American goods.

·         It will boost Made-in-America exports abroad while supporting higher-paying jobs at home.

Opponents (From US perspective)

·         TPP works well for CEOs and bad for domestic workers. (Pro corporate and anti poor)

·         TPP would offshore more American jobs, lower wages, flood with unsafe imported food.

Impact on India

·         Indian textile industry will be the biggest sufferer. It will lose its market share in UK, USA and other western countries.

·         Indian textile exports will become highly uncompetitive in the world market with respect to Vietnam’s textile exports that benefit immensely from TPP due to reduced import duties.

·         Other exports from India will also take a hit and it is said that India will lose 12-20% of its export market share.

For More on TPP Visit:

TPP vs RCEP

TPP Fodder Points

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