Exemption limit for luxury tax on hotel rooms hiked

Exemption limit for luxury tax on hotel rooms hiked

New Delhi, July 26: The Delhi government on Monday decided to hike the exemption limit on luxury tax on hotel rooms from Rs 500 to Rs 1,000. This will help budget travellers to the national capital during the Commonwealth Games in October. “In view of increase in the cost index of various services, it was thought to hike the threshold limit of luxury tax from Rs 500 to Rs 1,000 or more per day,” a government official said. Delhi Chief Minister Shiela Dikshit said the luxury tax on hotels has also been decreased from 12.5 per cent to 10 per cent. The step is part of an amendment in clause-I of section 2 of the Delhi Tax on Luxuries Act, 1996, which provides for levy of luxury tax on charges for accommodation and other services provided in a hotel room. Dikshit said the Amenment Bill will be introduced in the August 17-23 session of the Assembly. “The decision has been taken in view of the October 3-14 Commonwealth Games and on requests,” she added. (IANS)

Uproar over price rise stalls Parliament

Uproar over price rise stalls Parliament

New Delhi, July 27: Pandemonium reigned in parliament on Tuesday - the first working day of the monsoon session - as a united opposition vociferously demanded an immediate discussion on rising prices followed by a vote, leading to repeated disruptions and finally adjournments of both houses.

As the government ruled out the voting on the spiralling prices of essential commodities, opposition MPs refused to let the houses function.

As soon as members in the two houses assembled at 11 a.m., opposition MPs shouted slogans, stalling proceedings as they gave vent to their anger on the issue.

Members of the Samajwadi Party and the Rashtriya Janata Dal RJD, which support the government from the outside, joined the Bharatiya Janata Party (BJP) in demanding a discussion on the hike in prices of kerosene and cooking gas.

Leader of Opposition in the Lok Sabha Sushma Swaraj urged Speaker Meira Kumar to “set aside all the business and accept our adjournment motions and allow a discussion over rising prices, followed by a vote”.

Swaraj said the June 26 hike in kerosene and cooking gas prices had “disturbed the budget of the common man”.

The entire opposition, she said, had come together to demand a discussion on the issue and pointed out that some allies of the ruling United Progressive Alliance (UPA) have joined them.

BJP MPs, joined by members of other parties like the Left, walked up to the speaker’s podium shouting anti-government slogans like “Jo sarkar nikammi hai, woh sarkar badalni hai (The government that is inefficient needs to be changed)”.

The house was first adjourned till 12 noon but the protests continued after the house resumed.

In the melee, the speaker ordered papers listed for the day to be laid and asked Petroleum Minister Murli Deora to make a statement on the prices of petroleum products.

Deora defended the increase in fuel prices, saying the rise was “minimal” and such a decision was needed to improve the financial health of the oil marketing companies.

As he was unable to read out the statement amid the noise, Meira Kumar adjourned the house at 12.10 till 2 p.m.

As the members refused to relent after the house resumed at 2 p.m., the speaker was forced to call it a day.

The scenes in the Rajya Sabha were no different. It was chaos as the BJP and Left MPs did not heed Chairman Hamid Ansari’s repeated pleas to let house function.

Soon after new members took oath, opposition MPs were up on their feet.

The BJP-led National Democratic Alliance (NDA) was joined by the Samajwadi Party and AIADMK MPs in their protest. Ansari allowed Leader of the Opposition Arun Jaitley to speak but he could not as MPs protested noisily, forcing the chairman to adjourn the house till noon.

As the MPs reassembled, it was repetition of what had happened in the morning.

P.J. Kurien, who was in the chair, tried to pacify the members and asked ministers to lay the papers listed for the day. With the din continuing, Kurien adjourned the house for the day.

BJP leaders said the opposition was united over the price rise issue as the Left, the Samajwadi Party and other parties were with them.

“We are united. We want an adjournment motion and a vote on the issue,” BJP leader Gopinath Munde told IANS.

“We will bring the adjournment motion, we will not discuss anything else,” he said.

The Bahujan Samaj Party (BSP), which in the past has come to the rescue of the government by voting for it on crucial matters, also demanded a discussion and voting on the price rise.

The government has already ruled out the demand, saying that as per rules only matters of immediate and urgent attention can be allowed under an adjournment motion.

“This is disruption motion, it is not discussion motion,” senior Congress leader and Human Resource Development Minister Kapil Sibal told reporters.

Janata Dal-United (JD-U) leader Sharad Yadav said it was “strange” that government was not ready for a discussion.

He said the opposition was keen that Meira Kumar took an impartial view on its demand. “The entire country took part in the Bharat bandh against price rise,” he said, referring to the July 5 nationwide shutdown against the issue. “The fight will continue,” he vowed. (IANS)

Sensex rebounds by 57pts as RBI policy matches expectations

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Tuesday rose by over 57 points on buying in interest rate sensitive auto, realty and banking stocks as RBI steps matched with the street expectations.

The 30-share barometer closed 57.56 points higher at 18,077.61 points after an early range bound trade. Among the 30 BSE index components, 20 stocks closed with gains and nine ended with losses, while NTPC held unchanged.

Targetting to check the double digit inflation, RBI hiked its short-term lending and borrowing rate by 0.25 and 0.50 per cent respectively, which was well to expectation of the major market players, brokers said.

The bank also raised its projections for economic growth to 8.5 per cent this fiscal from the earlier estimate of 8 per cent, which further bolstered the market sentiment.

Banking stocks were in keen demand on expectations of better quarterly earnings. The BSE bankex rose by 0.69 per cent to 11,478.26 points after stocks of State Bank of India surged by Rs 26.15 to Rs 2,435, Punjab National Bank by Rs 14.35 to Rs 1,053.15 and HDFC Bank by Rs 13.65 to Rs 2,065.75.

ICICI Bank, Bank of India, Federal Bank, Kotak Mahindra Bank, Union Bank and Central Bank stocks also recorded handsome gains.

The broad-based National Stock Exchange index Nifty rose by 12 points to 5,430.60 points. The auto sector index gained the most by 2.44 per cent to close at 8,337.96 as Bajaj Auto surged by Rs 123.35 to Rs 2,649.95 and Hero Honda by Rs 53.85 to Rs 1,865.70. The realty sector index rose by 1.47 per cent to 3,461.25 as DLF, the biggest real estate developer, gained 2.06 per cent to Rs 319.50 on reports the domestic economic recovery firmly in place and strengthening.

A mixed pattern in the Asian region and higher opening in Europe this afternoon remained a positive factor for themarket throughout the later half.

TOI

Auto, home loans may get dearer as RBI hikes rates

MUMBAI: Targeting to check the double digit inflation, RBI today hiked its short-term lending and borrowing rates by 0.25 per cent and 0.50 per cent respectively, a move that could put pressure on banks to make auto, home and commercial loans expensive.

Although Finance minister Pranab Mukherjee said the steps announced by the Reserve Bank will check inflation without hurting growth, bankers and the industry fear that the initiatives will put pressure on interest rates.

In its first quarterly review of the monetary policy, RBI today increased the short-term lending rate (repo) to 5.75 per cent and short-term borrowing rate (reverse repo) to 4.50 per cent with immediate effect.

It, however, kept the cash reserve ratio (CRR), the cash which banks are required to keep with RBI, and bank rate unchanged as liquidity is tight in the system following over Rs one lakh crore outgo due to payments by telecom companies for acquiring spectrum.

The central bank has also raised the inflation target from 5.5 per cent to six per cent and said that economy will grow by 8.5 per cent, up from earlier projection of 8 per cent, this fiscal.

"I expect this policy will lead to further easing of inflation which already is going down. It should also keep us fully on track in terms of growth. The monetary policy ...is another calibrated step in the right direction," Mukherjee said while talking to reporters in Delhi.

However, according to Central Bank of India executive director Arun Kaul, "the monetary action by RBI is aimed at attacking inflation. It has made funds costlier for banks. It is a signal for upward movement of interest rates".

Describing the RBI's policy measures "a bit worrisome", Ficci president Rajan Mittal said, "the reverse repo (rate) increase will incentivise parking of funds by banks with RBI...reducing lending opportunities to industry...there is always underlying fear of the rate hike eventually leading to increase in lending rate."

Assocham President Swati Piramal expressed fear that "the lending rates may move north by 25 to 50 basis points making bank borrowings a little dearer..."

TOI