Beijing/shanghai:China’s top auto dealers’ association has asked the government to halve taxes on car purchases to revive faltering sales, sources said, as worries grow the country’s auto market could shrink this year for the first time in decades.
The China Automobile Dealers Association (CADA) submitted documents last month to the country’s finance and commerce ministries proposing the 10 percent auto purchase tax be halved, two people at the industry body told Reuters.
The influential body has made proposals in previous years that have helped shape auto policy. When China last cut the purchase tax three years ago, car sales soared in the world’s biggest auto market that is a key battleground for global car makers from General Motors to Toyota Motor.
CADA’s initiative comes as Beijing itself seems concerned about China’s auto industry, an important barometer of the health of the world’s second largest economy. It has launched stimulus measures as a bruising trade war with the United States is pressuring economic growth.
One of the people said the commerce ministry met with automakers this week to discuss the market and ways to spur growth, which included purchase tax cuts – a signal the central government may be warming to the idea.
“The overall car market is weak this year. Dealers I know are struggling to maintain their sales volumes as they feel pressure from both car makers and cash flow,” said the second person, a CADA official.
He confirmed the industry body had proposed to the two ministries to lower the purchase tax rate. “We asked for a 50 percent cut but any reduction could help.”
The first person, a CADA insider familiar with the plans, said the association was seeking a 50 percent cut to the purchase tax on cars with engines of 2.0 litre capacity or below, similar to the tax rebate on smaller-engine cars that helped drive rapid growth in 2016.
This person added it was unclear what the finance ministry and commerce ministry would do in response, but that the latter had met with car makers earlier this week to “discuss the performance of the auto market, sales trends and taxation”.
China’s Ministry of Finance and Ministry of Commerce did not immediately respond to requests for comment. The CADA insiders did not want to be identified because of the sensitivity of the matter.
CADA secretary general Xiao Zhengsan said the market might see a slight decline this year, but measures like promoting the rural car market or adjusting VAT for second-hand cars may bolster sales. He did not comment on the purchase tax cut proposal.
A spokesman for the China Association of Automobile Manufacturers (CAAM), Xu Haidong, said the nation’s top auto industry body had not proposed cutting the purchase tax.
CBDT refutes social media rumours on ITR filing, says no change in IT return forms
New Delhi: The Central Board of Direct Taxes (CBDT) has refuted rumours in social media regarding difficulties in filing return of income by taxpayers, stating that no change has been made in income-tax return (ITR) forms.
“No changes have been made in any of the Income-tax Return (ITR) forms including ITR-2 and ITR-3 since the notification made on April 1 2019, i.e. on the 1st day of the Assessment Year 2019-20,” CBDT said.
“It is reiterated that there are no changes in the notified ITR forms; only the utility has been updated to facilitate the taxpayers. Therefore, the assertion that numerous changes have been made in ITR-2 and ITR-3 on July 11, 2019, does not give a correct picture,” it added.
There were reports in social media that the taxpayers were facing difficulties in filing return of income in ITR-2 & ITR-3 due to large scale changes in the ITR form on July 11.
CBDT stated that the software utility for e-filing of all the ITR forms were released long back. The utility for e-filing ITR-2 and ITR-3 was released on May 2 and on May 10 respectively.
However, the software utility update is a dynamic process and is continuously taken up as per the feedback received from the users/filers to ease their experience in electronic filing of returns, it added.
CBDT further clarified that the updating of utility does not hamper filing of return as the taxpayers are allowed to file using the utility which is available at that point of time.
“For example, more than 85 lakh taxpayers have filed returns in ITR-1 till date by using the said utility, which has also undergone update later. Therefore, the impression that the taxpayers are not able to file return due to changes in ITR form is also not correct as more than 1.38 crore taxpayers have already filed their returns by using the utility released till date. Even though the utility is being updated regularly to provide ease to taxpayers, the returns filed by using the previous version of utility will continue to be valid,” it said.
Lagarde resigns as IMF chief, starting race for her successor
Washington: International Monetary Fund chief Christine Lagarde submitted her resignation from the global crisis lender, citing more clarity about her nomination to lead the European Central Bank as European legislators approved a new top bureaucrat.
Lagarde said in a statement her resignation was effective Sept 12, firing the starting gun for the IMF’s search for her successor, which is likely to be another European.
“With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund,” Lagarde said in a statement.
She said her resignation would expedite the selection for the next head of the IMF.
IMF succession is expected to be a major topic of discussion among G7 finance ministers and central bank governors meeting on Wednesday and Thursday in Chantilly, France, near Paris amid concerns that slowing global growth and trade conflicts will pressure vulnerable economies.
Lagarde’s resignation, first reported by Reuters, came two weeks after her nomination on July 2 for the ECB’s top job. She did not immediately quit the IMF because of uncertainty over whether the new European Parliament would support her and other new EU leadership positions, sources told Reuters.
Her nomination was part of a package of top officials agreed by EU governments that included German Defence Minister Ursula von der Leyen as European Commission president, who drew Green party opposition.
Later on Tuesday, von der Leyen was approved by the European Parliament in a 383-327 vote.
The European parliament will hold a nonbinding vote on Lagarde’s appointment, which is expected to be finalized by EU leaders at a regular summit on Oct 17-18.
Centre to launch portal to help Jet Airways staff find jobs, in touch with SpiceJet and IndiGo
Mumbai: The government may not have extended support to now-defunct Jet Airways, but it has promised to facilitate employment to job-less airline staff.
The Civil Aviation Ministry is in touch with other private airlines such as SpiceJet and IndiGo to assist Jet staff get meaningful employment.
Civil Aviation Minister Hardeep Singh Puri said that a website would be launched listing staff of Jet Airways and help find employment in other private entities.
“We are also producing a website which is ready. I wish I had the capacity of telling you that the website is up. Every employee would be listed there and the prospects for their re-employment or employment will be facilitated by the government,” Puri said while replying to Members in the Rajya Sabha on the Airports Economic Regulatory Authority of India (Amendment) Bill, 2019.
The Minister, however, said that government cannot assume responsibility for a business failure conducted by a private party.
Referring to Jet Airways, Puri said he was sensitive to (business) failure and willing to see what can be done within the governmental system to cushion that failure.
“But to suggest that a private sector entity goes belly up and the government has to take the responsibility I don`t think that is correct,” the Minister said.
Run out of cash, Jet Airways had suspended its entire operations on April 17. Subsequently, the government re-allocated its slots and foreign traffic rights to rival carriers. Lenders to the airline led by State Bank of India (SBI) have initiated bankruptcy proceedings against it after all attempts to rope in a buyer failed.
Before the airline suspended its operation, it had nearly 20,000 staff on its rolls. Several hundreds of them are learnt to have joined other carriers.
Replying to Members on the Airports Economic Regulatory Authority of India (Amendment) Bill, 2019, he also countered a comment that airfares had gone up.