Business Wrap: GST council hikes cigarette cess; Flipkart revises offer to buy Snapdeal & more
18 July 2017
- In an urgent meeting of the GST Council on Monday, the Centre and the states have decided to increase the cess on cigarettes, which had become cheaper after implementation of Goods and Services Tax from July 1. The move will raise the prices of cigarettes. At present, cigarettes are taxed at the rate of 28 %, along with a cess of 5 %. This is lower than what it was before the GST implementation. The increase will give Rs 5,000 crore extra revenue to the Centre’s exchequer.
- The centre has formally told the Supreme Court that it will not offer any new window to deposit or exchange demonetised notes. The response came after Supereme Court earlier asked the govt. to consider giving another chance to those who have not been able to deposit demonetised Rs 500 and Rs 1,000 notes due to “genuine reasons”. The Modi govt said that this would “defeat the very object of demonetisation and elimination of black money”.
- Flipkart has made a revised offer of $850 million to Snapdeal for buying the e-commerce entity. The deal does not include Snapdeal’s subsidiaries such as Freecharge, Vulcan Express and Unicommerce. Earlier, the merger had been delayed because of disagreement of the 2 companies over acquisition of the subsidiaries. The revised bid comes after Snapdeal rejected the Flipkart’s initial offer of $550 million made earlier this month.
- India is planning to develop metro rail projects in over 30 Indian cities which will provide huge opportunity in the construction sector. The sizeable opportunity will be for 3-5 years as per the IRCA. Currently the metro rail network is operational in nine cities and another five cities have under-implementation metro projects. According to ICRA, the total estimated cost for the project will be around Rs 2.5 lakh crore.
- Middle East’s largest airline Emirates and FlyDubai are planning to expand their commercial relationship. Both the airlines are planning to create combined fleet of 380 jets flying to as many as 240 destinations. According to the airlines, the plans are expected to be executed around 2022. Both the airlines are owned by the government of Dubai. The expanded partnership will roll out over the coming months and it will kick-off with an enhanced code share agreement in the fourth quarter.
By NewsX Bureau | First Published : 18 July 2017 , 8:46 AM