Tag: fm nirmala sitharaman

Regulatory Action on Crypto Assets Requires Global Coordination: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Thursday said that there was a greater acceptance among Group of 20 (G20) member countries that any new regulations on the crypto assets need to be globally coordinated.

“I am glad to say that there is a greater acceptance among all G20 members, that any action on crypto assets will have to be global. “The G20, I think, has responded fairly with alacrity (on the crypto challenge),” Sitharaman told reporters at a news conference after a meeting of G20 finance ministers and central bank governors.

“The G20 and its members agree that it’s not going to be possible to have an independent, standalone country dealing with the crypto assets,” the minister added.

Sitharaman told reporters that the group has willingly responded to the issue. A “synthesis paper” would be taken up on matters related to crypto assets during India’s G20 presidency.

India has maintained it wants a collective global effort to deal with problems posed by cryptocurrencies such as bitcoin, and the finance ministry back in February said it had held a seminar for G20 member states to discuss how to come up with a common framework.

Earlier in February, Sitharaman had said, “We are going through the study process so that there can be informed discussion. International Monetary Fund (IMF) and also the Financial Stability Board (FSB) have been doing their own little work on the crypto matter and progressing on their own. We’ve now asked them to do the papers and give it to us and the rapidity with which these papers have been already from IMF given and from FSB which will be given in time for the July meeting. I feel that we are progressing in this direction. So, something should develop.”

She made the remarks while responding to a question regarding a consensus among the G20 nations on crypto assets during India’s Presidency.

“Recognising the risks attached to the private virtual assets, G20 nations moved a step closer to developing a coordinated and comprehensive policy approach to deal with the crypto assets by considering macroeconomic and regulatory perspectives,” she said.

The Central government led by Prime Minister Narendra Modi has for several years debated drafting a law to regulate or even ban cryptocurrencies but has not made a final decision. The Reserve Bank of India has said that cryptocurrencies should be banned as they are akin to a Ponzi scheme.

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

FM Nirmala Sitharaman, US Treasury Secretary Janey Yellen Discuss Debt, Crypto at G20 Meet

Indian Finance Minister Nirmala Sitharaman and US Treasury Secretary Janet Yellen discussed strengthening multilateral development banks, global debt vulnerabilities and crypto assets on the sidelines of the G20 finance chiefs meeting on Thursday, the finance ministry said.

Yellen is expected to brief reporters later in the day and take part in a meeting of Group of Seven (G7) nations on the sidelines of the G20 meet.

India is hosting the first major G20 event under its year-long presidency at the summer retreat of Nandi Hills near tech hub Bengaluru.

“The two leaders discussed their perspectives on strengthening MDB (multilateral development banks), global debt vulnerabilities, crypto assets besides the Just Energy Transition Partnership,” New Delhi’s finance ministry said in a tweet.

Under the partnership, the United States and its allies, as well as multilateral development banks and agencies, provide funding to developing economies to move away from coal production and consumption.

India’s presidency of the bloc comes at a time when neighbouring South Asian countries Sri Lanka, Bangladesh and Pakistan have sought a bailout from the International Monetary Fund (IMF) over the past year due to an economic slowdown caused by the COVID-19 pandemic and the Ukraine war.

Reuters reported last week that India is drafting a proposal for G20 countries to help debtor nations by asking lenders, including China, the world’s largest sovereign creditor, to take a large haircut on loans.

During the event, the International Monetary Fund (IMF) plans to hold a virtual meeting with the World Bank, India, China, Saudi Arabia, the United States and other Group of Seven (G7) nations to try to reach understandings on common standards, principles and definitions on how to restructure distressed country debts.

India also supports a push by the IMF, the World Bank and the United States for the so-called Common Framework (CF) — a G20 initiative launched in 2020 to help poor countries delay debt repayments — to be expanded to include middle-income countries.

© Thomson Reuters 2023

Affiliate links may be automatically generated – see our ethics statement for details.

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2023 hub.

Check out our Latest News and Follow us at Facebook

Original Source

Budget 2023: Fully Imported Cars, Including EVs, to Cost More After 10 Percent Customs Duty Hike

Fully imported cars, including electric vehicles will cost more with Finance Minister Nirmala Sitharaman announcing hike in customs duty in the Union Budget 2023-24.

Customs duty on vehicles in completely built units (CBUs) costing less than $40,000 (roughly Rs. 32.7 lakh) or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has been raised from 60 percent to 70 percent, as per the Budget document.

Similarly, customs duty on electrically operated vehicles in CBU form, other than with cost, insurance and freight (CIF) value of more than $40,000, has also been raised to 70 percent from 60 percent.

The Budget also outlined that customs duty on vehicles, including electric vehicles, in semi-Knocked down (SKD) form will rise to 35 percent from 30 percent earlier.

Already, cars imported as CBUs with CIF more than $40,000 or with engine capacity more than 3,000 cc for petrol-run vehicles and more than 2,500 cc for diesel-run vehicles attract 100 percent customs duty.

“The Government has proposed to increase the duties on completely built units (CBUs) to 70 percent from 60 percent earlier.

“This is unlikely to have a material impact as most of the luxury cars are now assembled in India, barring the top-end variants. Nonetheless, an increase in customs duty will further aim to promote domestic manufacturing going ahead,” Icra Senior Vice President & Group Head Corporate Ratings Shamsher Dewan said.

On the other hand, Sitharaman proposed “to further provide impetus to green mobility, customs duty exemption is being extended to import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles.

The Finance Minister also noted that replacing old polluting vehicles is an important part of “greening the country’s economy”.

“In furtherance of the vehicle scrapping policy mentioned in Budget 2021-22, I have allocated adequate funds to scrap old vehicles of the Central Government,” she said.

States will also be supported in replacing old vehicles and ambulances, Sitharaman added.

“Multiple proposals in the Union Budget are seen favourable for the automotive sector. A sharp 33 percent increase in capital investment outlay, identification of critical transport projects for first and last-mile connectivity, and relaxation in personal tax rates shall aid the demand for the auto sector,” Dewan stated.

Thrust on green energy continues with specific budgetary allocation for old vehicle scrappage, energy transition, and viability gap funding for battery storage solutions with 4000 MWh, he added.

Customs duty exemption on the import of capital assets for manufacturing lithium-ion cells for batteries used in electric vehicles shall facilitate EV ecosystem development and aid faster penetration, Dewan said.

“An increase in the duty rates on compounded rubber from 10 per cent to Rs 25 (or) 30 per kg, whichever is less, is a challenge for tyre industry, which significantly depends on imported rubber,” he added

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Exit mobile version