[Fordlover88]

Originally Posted by karan0009

Just trying to figure out how this 2% reduction in pf is beneficial for me

It is not at all beneficial. For the time being you will be getting somewhat more take home salary. But at the end of year your overall income will be less.

[Dry Ice]

Clarifications have started coming in.

On the topic of vehicles above 10 lakhs, it's reduced to 0.75% now till Mar'21.

Check row 3.

[srini1785]

The logic behind the move :

Saving MSMEs A Priority Now, Not Salaried Middle Class: NITI Aayog Vice Chairman

https://www.ndtv.com/india-news/migr...home-topscroll

[AMG Power]

This has turned out to be a play of numbers (10% of GDP, 20 lakh crore etc) rather than an actual granting of benefits. The reliefs promised are going to be very difficult to capitalise on even for the very few who are eligible for the so called "concessions".

[RajeevSharma]

This is a Sham package announced by Govt. There is no measure to boost demand which can come by reduction in GST on big ticket items like Cars, motorcycles, Houses, TVs etc. They are fixing credit lines as if it was the problem. Good luck if they feel that they will have atmnirbhar Bharat by end of lockdown.

Demand is the keyword here. How are they planning to revive travel and tourism, revive and unleash pent up demand in the economy? These are the areas where plan a was required. They have said that banks will distribute loans to SME/MSME but banks never turned away from financing them on good plans anyway so, 5 L Crores out of 20 L crores spent with no perceptible change. The whole 20 L crores package is going to vanish in thin air without any action.

Govt needed to take a hit on tax rates of some items and it could have worked but they turned this Stimulus package into a PR opportunity.

[1.2TSI7DSG]

The package is still being released and I would wait to comment until all the details are out. Till now the Liquidity has been addressed. However, this may have a long term effect on the working capital and the overall debt to equity ratios of the organisation. Smaller institutions being given immense loans/credit facility, the banks may be putting their eggs in smaller & many baskets. In the long term how will it turn out is a story time will tell.

Cut in PF payments, more in-hand salary makes little sense when there is already less or no salary in many cases.

[sunnsood]

Originally Posted by Warwithwheels

One quick question regarding the EMI moratorium for the common man; Is it being extended for another 3 months?

RBI will make a fool of us by announcing that in another press conference.

In current situation, I think we all are "ram bharose"(only god can save us now).

[AnandB]

Originally Posted by RajeevSharma

This is a Sham package announced by Govt. There is no measure to boost demand which can come by reduction in GST on big ticket items like Cars, motorcycles, Houses, TVs etc. They are fixing credit lines as if it was the problem. Good luck if they feel that they will have atmnirbhar Bharat by end of lockdown.


Govt needed to take a hit on tax rates of some items and it could have worked but they turned this Stimulus package into a PR opportunity.

Agree. For MSME perspective its nothing new. Didn't they do the same with 10% credit allowed sometime back but now its 20%. As if banks are happy to pass that on. The 20lac crore will remain in numbers with actual amount substantially lower.

They just don't want to give a simple direct relief in form of taxes or interest. As if extending moratorium is helping anyone by paying more interest. They just don't want to give our tax money to us for once.

[m8002?]

I cant believe the 10% PF statement. It increases your take home by a marginal amount and you pay tax on that. How is that a stimulus package? And they word it like they have given you the money from the government coffers!!

Also, many of the other tax changes are just deferrals and not real reductions.

[sunnsood]

Originally Posted by m8002?

I cant believe the 10% PF statement. It increases your take home by a marginal amount and you pay tax on that. How is that a stimulus package? And they word it like they have given you the money from the government coffers!!

Also, many of the other tax changes are just deferrals and not real reductions.

ET is saying that the reduction on Employer contribution may not be passed onto the employees.

This is just going bad to worse for salaried class.

[xway]

I find so many comments here very selfish - not pointing any individual.
There is a global crisis never seen before, world is in doldrums.

Labourers are walking thousands of kilometers with no food and shelter, without jobs just to get home.

Here most of us are super privileged to have food and shelter and many even having income and jobs.

So most people want reduction in taxes so that they get some thousands more over the lacs they earn. Another set want reduction in GST to boos buying cars, houses, tvs.

Government coffers are running out fast and may soon dry down completely.

The only point at this stage should be to focus on the lowest under-privileged so that they get food and survive till this crisis tides off.

Let the government increase taxes anywhere they can which impacts middle class, salaried class or top class - as I am sure they have means to survive already, like a house to stay and food to eat.

Please spare a thought and see the plight of migrant labourers and count our blessings which we dont see just because we pay tax and thats not being reduced.

[AnandB]

No-one is asking for relief to make profits especially not much of the MSME sector. And providing this doesn't mean anyone is saying ignore the under-privileged. Govt. is supposed to do both. Govt is not the one employing many of these under-privileged. If business can survive only then the people it employs will survive.

This kind of thinking is exactly the one tax department is taking assuming all businessmen are chors and are always making loads of profits.

[Nav-i-gator]

Originally Posted by xway

I find so many comments here very selfish - not pointing any individual.


Let the government increase taxes anywhere they can which impacts middle class, salaried class or top class - as I am sure they have means to survive already, like a house to stay and food to eat.

Please spare a thought and see the plight of migrant labourers and count our blessings which we dont see just because we pay tax and thats not being reduced.

Good thought, But I think you are missing the point here, on multiple counts:

1. That's not how the "stimulus package" has been announced by the Govt. The first mistake is in the way it is presented - as if it is good for middle class.

2. Helping the labor class is through capital infusion in businesses under stress and raising consumer demand. You need to give businesses and salaried class people more money "in hand" (not free money per se), and make purchases favorable. Reducing taxes on purchases, reducing interest rates on loans etc will help in increasing demand. Demand triggers supply, supply triggers manufacturing and related industries, and that triggers employment of labor class. And govt earns more even by reducing the tax rates.

[PGA]

To me the measures announced are minor administrative / governance tweaks, will be pleasantly surprised if they make any difference on the ground.

Govt has been for long trying to increase liquidity in the system, remember reduction in corporate tax and RBI efforts, but the problem has been and now only exacerbating, is on the demand side.

To me the cause of the demand problem is indigenous, in short, it is the primacy of politics over everything else and Covid or no Covid that is not changing.

[akshay_ritz]

Originally Posted by xway

...
Let the government increase taxes anywhere they can which impacts middle class, salaried class or top class - as I am sure they have means to survive already, like a house to stay and food to eat.

Please spare a thought and see the plight of migrant labourers and count our blessings which we dont see just because we pay tax and thats not being reduced.

I am happy to pay more tax just say it transparently and take it. The government however is a master of Bollywood style management of economics. Look past the flashy sets and you see that the emperor has no clothes. The don't understand economics and they don't want to listen to people who do understand it. It's 45 days and we have not figured out how to feed migrants who are walking home on the highway. The number is flashy and there is no detail on how someone can use the benefits provided here. India is a complex country and we have award winning economists willing to help out. We don't want to ask them for some strange reason.