Page 29 - Plastics News February 2021
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FeAtures
• Agriculture and Infrastructure Development Cess: The Policy Highlights..
cess will be levied on some imported items including • Legislative Changes: A Securities Markets Code will
gold, silver, alcoholic beverages, coal, and cotton, be introduced to consolidate four Acts including the
and basic customs duty will be reduced by an equal SEBI Act, 1992 and the Government Securities Act,
amount. The cess will be levied on petrol and diesel 2007. The Insurance Act, 1938 will be amended
at the rate of Rs 2.5 and Rs 4 per litre respectively, to increase the permissible FDI limits in insurance
with equivalent cuts in excise duty. As the cess companies from 49% to 74%, and allow foreign
is not part of the divisible pool of revenue shared ownership and control with safeguards. The Companies
with states, their revenue receipts will be adversely Act, 2013 will be amended to revise the definition of
affected. small companies by increasing threshold for paid up
• Changes in customs duty: The duty has been increased capital (from Rs 50 lakh to Rs 2 crore) and annual
on some items such as cotton, silk, some auto and turnover (from Rs 2 crore to Rs 20 crore). Certain
mobile parts. offences under the Limited Liability Partnership Act,
2008 will be decriminalised. The Deposit Insurance
• “Mini-budget” announcements made earlier: The and Credit Guarantee Corporation Act, 1961 will be
safe harbour threshold for real estate transactions amended to ensure that depositors get time-bound
above the circle rate increased from 10% to and easy access to their deposits to the extent of their
20%. Encashment of leave travel concession will be insurance cover. The minimum loan size for NBFCs to
exempt from tax if the amount is used for purchasing be eligible for debt recovery under the SARFAESI Act,
certain goods.
2002 will be reduced from Rs 50 lakh to Rs 20 lakh.
• Reduction in time for income tax proceedings: Time • Disinvestment: Disinvestment of Air India, IDBI
limit for the re-opening of income tax assessment will Bank, and Pawan Hans will be completed in 2021-
be reduced from 6 years presently to 3 years.
22. Legislative amendments will be introduced to
• Exemption from audit: Businesses which carry 95% of privatise two public sector banks and a General
their transactions digitally and whose turnover is less Insurance company. The IPO for LIC will also be
than five crore rupees, are exempted from keeping completed in 2021-22. The government has approved
audited accounts. The threshold will be increased to a strategic disinvestment policy under which CPSEs
Rs 10 crore. will be maintained only in four sectors, with the
rest being privatised. States will be incentivised to
Non-Tax proposals in the Finance Bill disinvest their public sector companies. A Special
• There are some items that may not meet the Money Purpose Vehicle will be used to monetise government
Bill definition. These are listed below. owned land.
• LIC Act, 1956 amended to create a board of directors, • Finance: An Asset Reconstruction Company Limited
issue shares, reduce government shareholding upto and Asset Management Company will be set up to
51% of equity (minimum 75% in the first five years), consolidate and take over existing stressed debt,
cap voting rights at 5% to shareholders other than and manage and dispose assets. An institutional
central government. framework will be created for the corporate bond
• Securities Contracts (Regulations) Act, 1956 amended market to instil confidence among participants and
to allow pooled investment fund which collects money enhance liquidity of secondary markets. An investor
from investors. They may borrow money or issue debt charter will be introduced for financial investors
securities. Consequential amendments made in the across all products.
SARFAESI Act, 2002 and in the Recovery of Debts due • Corporate Affairs: Alternate methods of debt
to Banks and Financial Institutions Act, 1993. resolution and special frameworks for MSMEs will be
• SEBI Act, 1992 amended to require registration by introduced. A Conciliation Mechanism will be set up
Alternative Investment Trusts and Business Trusts. for quick resolution of contractual disputes.
29 Februar y 2021 Plastics News
