Economy News-Daily Digest: 3 Key Updates
1. Before GST rollout, govt approves renaming, restructuring of CBEC
The apex policy making body for indirect taxes, CBEC is being rechristened as the Central Board of Indirect Taxes & Customs (CBIC) in the run up to the Goods and Services Tax regime to be rolled out from July 1. The proposed CBIC shall supervise the work of all its field formations and directorates and assist the government in policy making in relation to GST, continuing central excise levy and customs functions, it said.
The CBIC will have 21 zones, 101 GST taxpayer services commissionerates comprising 15 sub-commissionerates, 768 divisions, 3969 ranges, 49 audit commissionerates and 50 appeals commissionerates. The existing directorate general of systems and taxpayer services is also being strengthened. The directorate general of GST intelligence is also proposed to be strengthened to help check tax evasion. The existing training establishment will be renamed as National Academy of Customs, Indirect Taxes and Narcotics and will have an all-India presence to enable capacity building of the employees of the indirect tax administration of the Centre and state governments along with members of trade and industry.
2. Bajaj, Kawasaki end sales tie-up
Japanese automobile major Kawasaki and Bajaj Auto have decided to end their eight-year-old alliance for sales and services. Bajaj Auto would allow it to focus on its superbike brand, built in association with Austrian company KTM. The alliance will end on April 1. However, Bajaj and Kawasaki will continue with their relationship in the rest of the world.
3. General Motors signs wage pact with Talegaon plant workers
General Motors (GM) India signed a three-year wage agreement with workers of its Talegaon plant in Maharashtra, with average salaries set to go up by Rs 22,000 at the end of the period. The new wage pact would be effective from April 1, 2017 and come to an end on March 31, 2020. The Talegaon plant has over 2,500 workers. As per the new agreement, the workers will receive 80% of the increased component in the first year followed by 10% each in the remaining two years, respectively