News Update

COVID-19: Global death tally inches close to 7.5 lakh including 48K in IndiaCBDT reconstitutes NeAC under Faceless SchemeTax Charter Launch - Taxpayer now assured of courteous behavior: PMCBDT directs Investigation & Central Charges not to send any Communication to assessees till further orderCBDT diverts 26 posts of CCIT + 129 posts of PCIT & 3 posts of CIT to National e-Assessment Centre AND re-designates posts diverted earlierCBIC reduces tariff value of gold and gold barsCBDT issues orders u/s 119 - International Tax & Central Charges assessment orders brought under Faceless Scheme + DG(Inv) to authorise all Surveys u/s 133APM says Govt trying for seamless, painless & faceless tax systemPM launches Income Tax ‘Transparent Taxation - Honouring the Honest’ Platform containing Taxpayers’ Charter & Faceless Assessment detailsChina retaliates; imposes anti-dumping duty on Indian fibre optic goodsIndia-China Faceoff - Do not keep quiet & take it on Chin! New Delhi needs to counter Beijing's Chequebook Diplomacy!CX - It cannot be said that notification 65/95-CE is unconditional and absolute - sub-section (1A) of Section 5A is not attracted - no irregularity in availment of CENVAT credit and payment of duty: CESTATCOVID-19 - Expert Group on Vaccine deliberates on delivery mechanismST - Intelsat, being a relay station itself, cannot be said to be a 'broadcaster'- charges paid by appellant to Intelsat not taxable under reverse charge: CESTATGovt allows registration of Electric Vehicles without batteriesCus - If issue is to be adjudicated by just reiterating the findings and decisions recorded in previous o-in-o which has been set aside by tribunal, then the AA has failed in task assigned to him for reconsideration of matter: CESTATCOVID-19 - Global tally surpasses 20.5 million, says Johns Hopkins UnivFormer President Pranab Mukherjee continues to be ventilator supportJammu to Delhi travel time will come to just about six hours: MoSMoney Laundering - Huge transactions in HK and US Dollars unearthedGST Data safe with GSTN - don't worry, there's a solution
Emerging Asian economies including India to contract by minus 2.9% in 2020: OECD

By TIOL News Service

NEW DELHI, AUG 01, 2020: AS per latest OECD report, emerging Asian economies will contract by an average of -2.9% in 2020 as a result of the COVID-19 crisis. The pace of growth is at historic lows in most countries of the region, which encompasses the ASEAN-10, China and India.

ASEAN, growth is projected to shrink by an average of -2.8%, according to the OECD’s Economic Outlook for Southeast Asia, China and India 2020–Update: Meeting the challenges of COVID-19, released today. Headline inflation in the region remains moderate overall, while current account balances are expected to weaken in the coming quarters.

Countries in Emerging Asia that have managed to contain the virus are beginning to recover, while India, Indonesia and the Philippines still face rapidly rising case counts and are struggling to regain their economic footing. Lockdowns and restrictions on movement in response to the health crisis have come at great cost to economic activity. Financial markets and the banking sector are suffering, businesses are facing lower income and rising debt, and households are exposed to rising risks due to job losses and subdued prospects for labour. The crisis has disrupted global value chains as never before, with profound implications especially for countries highly dependent on imports.

The scale of the fiscal response is unparalleled, with policies targeted at providing economic support to buoy growth. Monetary policy rates have been lowered by 30 to 300 basis points since the end of 2019, while some countries also eased reserve requirements for banks. Fiscal support was mostly provided through tax relief or direct subsidies to the most affected businesses and households. Indonesia, Malaysia, Singapore and Thailand unveiled multiple fiscal stimulus packages. The budgetary effort related to COVID-19 calls for prudence to keep fiscal policies on a sustainable path, in particular in those countries where fiscal buffers were already low before the crisis.

With record expansion of telework, video-conferencing and digital teaching in the context of global lockdown measures, the pandemic demonstrated the importance of digitalisation. To benefit from this trend, Emerging Asia needs to improve access to digital services, including the Internet, and to increase digital literacy. Digital payments should be facilitated to support e-commerce.

The crisis battered the region’s important travel and tourism sectors. In addition to emergency support, these sectors require plans to encourage domestic tourism, prepare for the return of international tourists and offer training to workers whose jobs may not be restored. Likewise, health sectors need to develop policies to cope with future outbreaks. Regional co‑operation will be a critical factor of success.

The report benefitted from the support of the governments of Japan, Korea and Switzerland, and the European Union.