Home Minister P Chidambaram pitched for higher taxes on luxury products

Concerned over low tax-GDP ratio, Home Minister P Chidambaram has pitched for higher taxes on luxury products and imposing inheritance tax.
Chidambaram, who is a former finance minister, had expressed these views at the full Planning Commission meeting headed by Prime Minister Manmohan Singh last month.

"We are really underestimating our capacity to raise resources, especially tax resources. Since non-plan expenditure is difficult to contain, the tax-GDP ratio must be raised especially by taxing conspicuous consumption and imposing inheritance tax," Chidambaram had said.

According to the minutes of the meeting held on April 21, the Home Minister had also underlined the need for streamlining the manufacturing sector to generate more jobs.

The Plan panel has proposed to raise the tax-GDP ratio from projected 7.7 per cent in the 11th Plan (2007-12) to 8 per cent in 12th Plan (2012-17). It also wants the ratio to be raised from estimated 7.2 per cent in 2011-12 to 8.8 per cent in 2016-17, terminal year of the 12th Plan.

Chidambaram also talked about improving the management of the public sector undertakings and made a case for providing security of tenure to managers and officials in energy and infrastructure PSUs and ministries.

During the meeting Planning Commission has proposed to raise average economic growth of 9 to 9.5 per cent during the 12th Plan period from a likely 8.2 per cent in the current five year plan

Mahindra Q4 net up 6.36% on strong volume growth

Mahindra & Mahindra has posted 6.36 per cent jump in its net profit for the fourth quarter ended March 31 at Rs 606.54 crore as against Rs 570.26 crore, helped by strong volume growth, but said the commodity prices is a cause for concern.

"Despite soaring commodity prices, the company posted stellar profit in the fourth quarter ended March 31, due to better volumes. It was a year of growth for us. We closed the year (FY 11) with a strong fashion," Mahindra Group Vice-Chairman and Managing Director, Mr Anand Mahindra told reporters here on Monday.

"There was pressure on operating margins due to high input costs, but we maintained a good balance. Commodity prices are a matter of concern," he said.

The company's total income in the forth quarter(FY 11) stood at Rs 6,825.57 crore as against Rs 5,322.75 crore year ago.

For the year ended March 31, 2011, net profit stood at Rs 2,662.10 crore as compared to Rs 2,087.75 crore in the previous fiscal. Its total income for FY 11 stood at Rs 23,803.24 crore as against to Rs 18,801.46 crore in the previous fiscal.

The company sold 358,021 vehicles in the domestic market during FY 11 and sales of SUVs such as Scorpio, Xylo and Bolero increased 12 per cent, to 196,205 units.

"We see pressure on operating margins but did not pass on higher raw material costs to our customers," Mahindra Group Chief Financial Officer Mr Bharat Doshi said.

Cricket: Eng-SL 1st test; Tremlett and Swann bowls England won by an innings and 14 runs

Sri Lanka 400 and 88 all out (Tremlett 4/40, Swann 4/16) lost to England 496 for 5 dec (Trott 203, Cook 133, Bell 103*) by an innings and 14 runs

England surge to victory by an innings and 14 runs, Tremlett leading them from the field with souvenir stump in hand. Sri Lanka just completely lost it after tea, their composure falling away completely as they imploded to lose 8 for 49 in just over 12 overs since tea. What an incredible finish, we're all still catching our breath here.

Tremlett started the slide with two wickets before the break and a third immediately upon the resumption to reduce Sri Lanka to 33 for 3. It was one-way traffic from there, Swann coming to the fore after the initial damage had been done to claim four quick scalps and Broad returning to finish things off. Sri Lanka were completely blown away.

With few spectators to witness it, Chris Tremlett produced a hostile spell with the new ball to rattle Sri Lanka's top order on the final afternoon in Cardiff. After heavy morning rain Ian Bell was given a chance to reach his hundred then Andrew Strauss declared, to leave his attack 51 overs at the visitors, and both openers were back in the pavilion within the first four although Sri Lanka steadied themselves to reach 33 for 2 at tea.

Tremlett struck with the last ball of his first over when Tharanga Paranavtiana edged a low catch to first slip and his second came when Tillakaratne Dilshan got into a tangle against a shorter delivery. The catch lobbed back to Tremlett and Dilshan was given out immediately but opted for the DRS only for it to show the ball had brushed glove and Sri Lanka were 10 for 2. Even though time remained against a victory push England were laying down useful markers ahead of Lord's.

The experienced pair of Kumar Sangakkara and Mahela Jayawardene found it tough to battle through to tea, especially against Tremlett who maintained a probing line. Sangakkara spooned a square drive just wide of point and Jayawardene edged in front of the slips off Stuart Broad, who looked in better rhythm than the first innings.

The merits of allowing Bell to reach three figures are likely to be debated because of the signal it sends out that personal milestones are given such importance. It took Bell two overs to collect the two runs he needed as he edged the first ball of the day to fine leg then guided a boundary to third man off Thisara Perera. For the record it was Bell's 13th Test hundred and came from 159 deliveries.

Indian Oil Corporation plans to hike petrol prices next month again

State-owned Indian Oil Corp , the nation's largest fuel retailer, today said it may hike petrol price next month as the steep hike of Rs 5 per litre of May 15 was not enough to cover for the cost of crude oil.

"Even after the hike, we are today losing Rs 4.58 per litre. After including VAT, the desired increase at retail level comes to Rs 5.50 a litre," IOC Chairman R S Butola told reporters here.

The desired hike in price has been calculated based on the average crude oil price of the first fortnight of May. However, from June 1, which will take into account the average of second half of May when international rates moderated, IOC will lose Rs 1.15 per litre. After including VAT, the desired hike in Delhi would be Rs 1.35 a litre.

"We will have to take a view (on hiking petrol price) soon," he said. "Government is not compensating us for selling petrol at below international cost since June 2010 when its pricing was freed."

Butola, however, refused to say when the rates will go up. "We will have to consider the environment we operate in before taking that call."

On diesel, he said, the company will from June 1 expected to lose Rs 12.64 per litre. It currently loses Rs 14.66 a litre on diesel.

Similarly, on domestic LPG it is losing Rs 380.57 per cylinder and Rs 25.85 a litre on PDS kerosene.

An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee is likely to meet on June 9 to consider raising prices of the three controlled commodities -- diesel, domestic LPG and kerosene

Gold declined by Rs 45 to Rs 22,820, while silver shed Rs 350 to Rs 57,250 per kg

Gold declined by Rs 45 to Rs 22,820, while silver shed Rs 350 to Rs 57,250 per kg today due to a weakening global trend amid sluggish local demand.

Traders said sentiments turned weak after both the precious metals recorded fresh losses in the global markets along with lack of buying interest at prevailing high levels in the local markets.

Gold in global markets, which normally sets a price trend on the domestic front, eased by $1.40 to $1,535.10 an ounce, while silver shed 0.21% to Rs $37.88 an ounce.
On the domestic front, silver ready fell by Rs 350 to Rs 57,250 per kg and weekly-based delivery declined by Rs 335 to Rs 57,250 per kg.

Silver coins followed suit and declined by Rs 1,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces.

In line with a general weakening trend, the gold of 99.9 and 99.5% purity declined by Rs 45 each to Rs 22,820 and Rs 22,700 per 10 grams, respectively.

However, sovereigns remained steady at Rs 18,700 per piece of eight grams

Maruti suzuki likely to start a plant in Gujarat, MD to meet CM Modi

The country's largest car maker Maruti Suzuki India's Managing Director Shinzo Nakanishi will meet Gujarat Chief Minister Narendra Modi tomorrow to discuss and possibly finalise a deal to set up its 7th manufacturing plant in the state, a senior government official said on Monday.

"Yes, Maruti Suzuki MD is scheduled to meet the Chief Minister tomorrow," Gujarat Principal Secretary (Industries & Mines) Maheshwar Sahu said when asked if any such meeting is planned to discuss the agreement.

If a deal to set up the plant in Gujarat is finalised in the meeting, then it will be the first major investment by Maruti Suzuki India (MSI) outside Haryana, where it has been present since its inception in 1983.

Sahu, however, declined to share details such as whether the final agreement will be signed tomorrow, the location of the proposed facility and likely incentives to be offered.

Official sources close to the development said MSI has zeroed in on a location near Sanand out of three offerings -- Sanand, Halol and Dholera.

"Besides Nakanishi, the top level MSI delegation will also include its Chairman R C Bhargava and some other senior officials," a source said.

When contacted, a MSI spokesperson said: "We are not in a position to comment in this matter."

Earlier this month, senior MSI executives had met state officials here and held three rounds of talks so far.

MSI's manufacturing has so far been concentrated in Haryana with two production facilities in Gurgaon and Manesar, besides an upcoming research centre in Rohtak.

If finalised, the Gujarat unit will be the company's 7th production plant. While the existing plant in Manesar can produce 3.5 lakh units annually, its three units in Gurgaon have a combined annual capacity of 8.5 lakh units.

At present MSI, which is 54.2 per cent owned by Suzuki Motor Corp, is setting up two new units with an annual installed capacity of 2.5 lakh units each inside its Manesar facility at a total investment of Rs. 3,625 crore.

Once the new units in Manesar become operational by 2012-13, the company's total production capacity will go up to 17 lakh units annually from 12 lakh units per year at present.

Besides fresh investment at Manesar, MSI is investing Rs. 2,500 crore for its K-series engine plant and setting up a dedicated R&D facility at Rohtak.

In 2010-11, the company's sales soared 24.81 per cent to 12,71,005 units from 10,18,365 units in the previous fiscal.

Domestic sales increased by 30.08 per cent to 11,32,739 units from 8,70,790 units in the previous fiscal.

MSI's passenger car sales during last fiscal jumped by 26.24 per cent at 9,66,447 units from 7,65,533 units in FY'10. However, its market share in this segment fell to 48.74 per cent from 50.09 per cent in 2009-10.

2G Scam: Lawyer withdrawn his petition against Ambani, Tata, Radia & Dayalu

A lawyer, who had approached a Delhi court seeking direction to CBI to make Reliance ADAG chairman Anil Ambani, Tata group chief Ratan Tata , corporate lobbyist Niira Radia and DMK chief M Karunanidhi's wife Dayalu Ammal as accused in the 2G scam, today withdrew his petition.

Advocate R Krishnamurthy sought to withdraw his application seeking a direction for making the four as accused in the high-profile case after special CBI judge O P Saini took a strict position and asked him some tough questions.

"Kindly show me the law under which I can pass the direction to the CBI?," Saini asked the advocate, who failed to answer his question.

Realising that the court was not happy with his petition, the lawyer sought permission to withdraw the same which was allowed.

"The application is dismissed as withdrawn," the court said.

During the brief hearing, Krishnamurthy produced his letter dated February 26, addressed to the CBI Director, before the court.

He said that CBI had not responded to the letter. The lawyer had filed application on May 20 saying, "as far as 2G scam is concerned, the key role is played by Niira Radia, Ratan Tata, Anil Ambani and Dayalu Ammal (wife of DMK chief M Karunanidhi). The truth will come out only by impleading them in the charge sheet."

The court had earlier slapped a fine of Rs 10,000 on a journalist for seeking a direction for CBI to make some telecom companies like Videocon-owned Datacom, S-tel, Aircel and Maxis as accused in the 2G case.