New Delhi, August 7: With reports of Foreign Portfolio Investors (FPI) exodus plunging amid the economic downturn, Union Foreign Ministry is mulling exempt investors from higher taxes and for this, the Modi government is most likely to issue a notification or an executive order soon.
According to an official in the Foreign Ministry, Centre is looking at various aspects of decreasing the additional tax on FPIs - mainly registered as trust - from the increase in surcharge on super-rich taxpayers. Earlier, Sithraman has assured the investors that her ministry is getting inputs from various sectors and on its way to improve the falling economy. Also, Sitharaman had stated that she is ready to hear from FPIs on 'any issue'. Nirmala Sitharaman Claims Modi Govt Taking Steps to Improve Falling Indian Economy, Says 'Ready to Hear From FPIs on Any Issue'
According to the Union Budget 2019 - read out by Sitharaman in Parliament on July 5 - had provided for increased personal income taxes on those with an annual income of more than 20 million rupees (USD 283,045). Soon after this, reports started pouring in that FPI exodus began in the country and economic declined.
On Wednesday reports arrived that within four months, the economic crisis in the Auto sector has resulted in laying of over 3.5 lakh jobs and more are expected in the coming months. The worrisome situation is considered to be the biggest challenge for the Narendra Modi-led Union government, claiming to provide millions of jobs in their tenure. Indian Economic Slowdown Hits Auto Sector, Over 3.5 Lakh Employees Laid Off Since April 2019
It is to be known that the jobless rate rose to 7.51 per cent in July 2019 from 5.66 per cent a year earlier, according to private data group CMIE. It might sound even surprising that auto sector - which contributes more than 7 per cent of country's GDP - is facing one of its worst downturns in decades, affecting more than 3.5 crore people directly and indirectly.