9 PM Daily Current Affairs Brief – May 20th, 2023

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GS PAPER - 2

Why the Andhra HC struck down order seeking to regulate public assemblies, processions

Source: The post is based on the article “Freedom of speech the ‘bulwark’ of democracy: Why the Andhra HC struck down order seeking to regulate public assemblies, processions” published in The Indian Express on 20th May 2023.

Syllabus: GS 2 – Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Relevance: concerns associated with the Government Order of the Andhra Pradesh government.

News: The Andhra Pradesh High Court has struck down a Government Order (GO) issued by the Andhra Pradesh government that sought to regulate public meetings, processions, and assemblies on roads, highways, and streets.

What were the arguments presented by the government on its order and what did the court say?

Andhra Pradesh Government: Through the GO, the government sought to regulate public meetings or assembly on roads.  The government told the court that it decided to regulate the conduct of meetings without imposing a blanket ban to prevent accidents like stampedes.

The government further argued that roads are made for smooth movement of traffic. Therefore, if there is a hindrance to it, then the state can impose reasonable restrictions.

The state government relied on Sections 30, 30A, and 31 of the Police Act, 1861, to issue directions under the GO.

Court: The court clarified that Section 30 of the Police Act only gives authorities the power to regulate the conduct of assemblies, processions, etc., on public roads.

The Court emphasized that the power granted to the police or magistrate under these sections is limited to regulating assemblies, especially when there is road blockage.

The right to assemble or protest peacefully in streets, public places, etc. cannot be restricted totally by virtue of these sections of law.

The court further said that if the officer concerned thinks that the assembly may cause a breach of peace then he can ask the organisers to apply for a license and prescribe the conditions under which the procession can be held.

The court also held that an accident occurring at a particular place cannot be used as a “cause” to curtail the right to assemble on all other roads.

Instead, the cause of such incidents should be studied fully, and then guidelines can be issued to prevent repetition.

What did the court say about the right to assembly?

The court said that the “right to assemble, to protest peacefully, and to express one’s opinion freely” is an important freedom which cannot be taken away.

Freedom of speech is the “bulwark” of democracy and is regarded as the first in the hierarchy of liberties.

Therefore, this freedom should not be curtailed on anyone’s discretion and these rights can only be subject to a ‘reasonable restriction’.

The court also relied on the Supreme Court judgment of 2018 which laid down guidelines for peaceful assembly.

What were the guidelines laid down in the 2018 SC ruling?

SC in Mazdoor Kisan Shakti Sangathan v Union of India, laid down guidelines for regulating protests and demonstrations.

The guidelines – a) regulated the intended number of participants in such demonstrations, b) prescribed the minimum distance from the Parliament House, SC, and the residences of dignitaries within which no demonstrations were allowed, c) imposed restrictions on certain routes where the PM, Central Ministers, and Judges pass through, d) disallowed demonstrations when foreign dignitaries were visiting a place or route and e) disallowed demonstrators from carrying firearms, lathis, spears, swords, etc.

Legal recognition for same-sex marriage is a natural consequence of the right to privacy

Source: The post is based on the article “It’s Your Job, Milords – Legal recognition for same-sex marriage is a natural consequence of the right to privacy. So, Supreme Court not legislature is the correct forum to grant this right” published in The Times of India on 20th May 2023.

Syllabus: GS 2 – Mechanisms, Laws, Institutions & Bodies Constituted for Protection & Betterment of Vulnerable Sections

News: The article discusses the issues concerning same sex marriages.

What has been the stand of the Supreme Court on same sex marriages?

There are two important judgments of the SC in this regard – 1) Navtej Singh Johar (2018), which struck down Section 377 IPC and 2) KS Puttaswamy (2017), which recognized the right to privacy as being a fundamental right.

Hence, legal recognition of same-sex unions/marriages comes as a continuation of these judgements. Whereas, denying it is a direct infringement of their right to privacy.

However, SC has reserved its judgment on legal recognition of same sex marriage.

What are other concerns related with the recognition of same-sex marriages?

An important question arises whether the Parliament can intervene into the recognition of same-sex marriages even if the court has recognized it.

If the answer is yes, then legislature can by law reverse the judicial recognition of the right to same-sex relationships.

However, if it is accepted that the legal recognition of same-sex marriages is only a natural consequence of their right to privacy, then the state would not be competent to make a policy decision in this area.

Moreover, if the fundamental right to embrace one’s sexual orientation is considered a part of the fundamental right to privacy, then leaving the decision to recognize same-sex marriage on to the government would not serve the purpose.

This is because the government does not support this idea and it prioritizes social morality over constitutional morality.

What are the Constitutional provisions that support same-sex marriage?

The Constitution ensures every citizen the right to equality with the right against discrimination on any ground including sex and sexual orientation.

Therefore, as per the Constitution, the state cannot deny its citizens the right to legal recognition of marriages on the only ground of varied sexual orientation.

Must Read: Legalising Same-sex marriages in India and associated challenges – Explained

What can be the way forward for same sex marriages in India?

The legal recognition of same-sex marriages will not only guarantee the couple rights for adoption, surrogacy, procreation but will also ensure dignity to their children.

Further, the institution of marriage is equally important to individuals regardless of their gender identities.

Moreover, Justice DY Chandrachud also said that the Supreme Court must not risk losing its role as a leading institution in upholding constitutional values. Else, the erosion of its authority would pose a significant threat to democracy.

Therefore, until the Parliament makes the law and recognizes the same-sex marriage, it is better to have expectations from the SC for its recognition.

Tracking SDG progress the Bhopal way

Source: The post is based on the article “Tracking SDG progress the Bhopal way” published in The Hindu on 20th May 2023.

Syllabus: GS 2 – Mechanisms, Laws, Institutions & Bodies Constituted for Protection & Betterment of Vulnerable Sections

News: Bhopal has released its Voluntary Local Review (VLR). With that it has become the first city in India to join the growing global movement on localisation of Sustainable Development Goals (SDGs).

In 2015, 193 United Nations member-states adopted the 2030 Agenda for Sustainable Development. This agenda consists of 17 SDGs and 169 targets aimed at people, planet, and prosperity.

To depict the progress on the agenda, member-states submit a Voluntary National Review (VNR) to the UN’s High Level Political Forum (HLPF). This submission was recently extended to the local level. Now Voluntary Local Review (VLR) is also submitted which reports local implementation of SDGs at the sub-national and city levels.

What are the provisions of localisation of SDGs through VLRs?

Cities are crucial for achieving at least 65% of the 169 SDG targets, necessitating local urban stakeholders’ involvement. The VLR serves as a tool to showcase local actions leading to equitable and sustainable transformations.

Although it is ideal for city’s VLR to align to the State-level action plan (where available) and the country’s VNR, VLR mechanism allows flexibility to the cities to select the SDGs to focus upon.

This flexibility is given, considering the fund crunch and logistical challenges of cities.

India’s progress on the Sustainable Development Goals (SDGs)

India has made notable progress towards adoption and achievement of the SDGs, with NITI Aayog presenting India’s second VNR at the HLPF in 2020.

The Ministry of Statistics and Program Implementation (MoSPI) of India has published a National Indicator Framework (NIF) for the review and monitoring of the SDGs, representing India’s unique development journey.

Efforts of India towards localisation of SDGs

India has made significant progress towards adoption and achievement of the SDGs. NITI Aayog presenting India’s second VNR at the HLPF in 2020.

NITI Aayog reported that at least 23 States and Union Territories have prepared a vision document based on SDGs. Almost all of them have initiated steps to localise the SDGs. However, it is a time taking process.

Significance of Non-Governmental Stakeholders in the VLR Process

A VLR does not necessarily have to be initiated by a local government. It can be carried out by any city-level stakeholder within the framework of Agenda 2030.

Bhopal’s VLR is the result of a collaboration between the Bhopal Municipal Corporation, UN-Habitat, and more than 23 local stakeholders.

Bhopal’s VLR has helped identify the city’s performance areas in solid waste management, public transportation, and open spaces per capita.

It also highlights areas that need improvement, like provisioning of adequate shelter, air pollution, city planning capacity, and even distribution of open spaces.

In the city of Canterbury in the United Kingdom, some residents and local groups came together to do the VLR, with the help of local government. However, the local government merely served as interlocutors in the VLR process.

Similar examples have been observed in Dhulikhel (Nepal), Singra (Bangladesh), and Amman (Jordan).

On PM Modi’s visit to Australia: Delhi to Canberra, a new journey

Source: The post is based on the article “On PM Modi’s visit to Australia: Delhi to Canberra, a new journey” published in Indian Express on 20th May 2023.

Syllabus: GS 2 – Bilateral, multilateral agreements of India

News: Prime Miniter Modi has continued with the scheduled visit to Australia, even after the cancellation of Quad Summit. It shows the importance India places on its relationship with Australia.

What are the strengths of India Australia Relations?

Cultural Links: There are strong cultural connections between these two vibrant, democratic societies. This is evident in the similarities between places like Parramatta in Sydney and Polo View in Srinagar.

Regular visits: High-level visits between the two countries are now regular. For instance, Australian PM Anthony Albanese visited India just two months ago.

Shared platforms: Both countries regularly interact through multilateral, trilateral, and minilateral forums, such as QUAD, G7, East Asia Summit, G20, and the Indian Ocean Rim Association.

Through these platforms, both countries focus on the goals of common interests like maritime awareness, supply chain resilience, and climate change.

Resilient supply chains: India and Australia have pledged to build secure and resilient supply chains for strategically significant sectors such as clean energy, electric vehicles, semiconductors, aerospace, and defence. In this regard, an MoU signed between India’s Khanij Bidesh Ltd (KABIL) and Australia’s Critical Minerals.

Space collaboration has been prioritised in the Australia-India bilateral partnership. Australia participated as a partner country in the Seventh Bengaluru Space Expo. Australia is supporting India’s Gaganyaan Space Programme.

Education forms the cornerstone of the bilateral relationship, with Australia being a popular study destination for Indian students. PM Albanese’s announcement of an education agreement that gives mutual recognition to the qualifications of both countries is the most comprehensive of its kind with any other country.

Trade: Last year both countries struck a trade deal after two decades of effort. It will lift the trade between both countries from the current base of $35 billion.

New announcements: Australia has announced multiple initiatives, like the opening of a new consulate in Bengaluru and a new centre for Australia-India relations in Sydney, to deepen its ties with India.

Allopathy Plus – Integrative medicine is well worth researching

Source: The post is based on the article “Allopathy Plus – Integrative medicine is well worth researching” published in The Times of India on 20th May 2023.

Syllabus: GS – 2: Issues relating to development and management of Social Sector/Services relating to Health.

Relevance: About attaining integrative health.

News: Recently, the Indian Council of Medical Research and GoI’s AYUSH ministry signed an MoU to promote and collaborate on integrative health research.

About integrated systems of medicine, government initiatives and advantages

Must read: Integrated system of medicine: Need and significance – Explained, pointwise

What are the challenges in attaining integrative health?

Different school of thought: Integrating allopathy with alternative approaches (AYUSH) under the banner of integrative medicine has a long history. But despite that, there are significant differences in the underlying approach to treatment. This is because a) the practitioners of the modern medicine system rest on standardisation, b) The importance of randomised controlled trials in allopathy to establish the safety and efficacy of treatments. Other therapies don’t easily allow themselves to these RCTs.

What needs to be done to attain integrative health?

India should carry out more research in various fields. The regulatory authorities should curb misinformation on efficacy and risks.

GS PAPER - 3

Tax on international credit card transactions: rationale and challenges – Explained, pointwise

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Introduction

The recent imposition of tax on international credit card transactions has stirred discussions. This new policy aims to address the disparity between debit and credit card transactions abroad and prevent bypassing of Liberalised Remittance Scheme (LRS) limits.

However, it brings with it certain complexities. While aiming to enhance transparency and ensure prudent foreign exchange management, the tax also raises concerns about the increased financial burden on consumers and potential implications for cash flow. This makes it imperative to explore the rationale behind this move and the challenges it poses.  

What is the rationale behind the Tax on international credit card transactions?

High foreign exchange outflows: International credit card transactions result in an outflow of foreign exchange from the home country. If this spending is high or uncontrolled, it could potentially strain the country’s foreign exchange reserves. By imposing a tax, the government aims to discourage excessive spending, helping to manage foreign exchange resources effectively.  

Tax evasion: A tax on international credit card transactions helps ensure tax compliance and prevent tax evasion. Prior to this, there was a potential loophole where individuals could make large purchases abroad, which were not counted towards their taxable income in their home country.  

Inequality between debit and credit card transactions: International transactions made through debit cards were already accounted for under the Liberalised Remittance Scheme (LRS) limit. However, the use of international credit cards for expenses abroad enjoyed an exemption and was not counted under the LRS limit. This created a disparity in the treatment of debit and credit card transactions. The introduction of the tax on international credit card transactions aims to address this differential treatment.  

Fiscal Inequity: By levying taxes on international credit card transactions, governments aim to ensure fiscal equity, meaning all types of income (including gains from foreign transactions) are taxed similarly.  

About Tax on international credit card transactions

Tax on international credit card transaction
Source: Hindustan Times

Introduction to Tax on international credit card transactions: The government has imposed a tax on international credit card transactions. This tax is known as the Tax Collected at Source (TCS) and it applies when spending through credit cards crosses certain limits under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS).  

Liberalised remittance scheme (LRS): Under the LRS, resident individuals can freely remit up to USD 250,000 per financial year for permissible transactions. Previously, international credit card spending was not accounted for under this limit. However, recent changes now bring this spending under the scope of LRS, effectively creating parity between the usage of debit and credit cards abroad.  

Changes in the Tax rate: Now TCS rate will be 20% on foreign remittances that exceed the annual LRS limit of USD 250,000. This is an increase from the previous TCS rate of 5%.  

Exemptions from the Tax: Notably, the new provisions do not apply to payments for ‘education’ and ‘medical’ purposes and do not affect the use of international credit cards by residents while in India. IT sector workers travelling on business trips will not be affected by the new provisions.  

What are the expert’s opinions about imposing Tax on international credit card transactions?

Read here: International credit card spends outside India will attract 20% TCS: How cardholders may be impacted  

What are the advantages of imposing Tax on international credit card transactions?

Promoting financial transparency: The imposition of tax on international credit card transactions under the Liberalised Remittance Scheme (LRS) promotes financial transparency. This is because all transactions exceeding the annual limit of USD 250,000 now have to be reported and taxed.  

Elimination of disproportionate spending: The measure aims to prevent disproportionate overseas spending through credit cards when compared to an individual’s disclosed income. It helps in keeping a check on disproportionate high spending that is not in line with the income disclosed by the users.  

Enhanced revenue for the government: By taxing these transactions, the government can generate additional revenue. The increase in Tax Collected at Source (TCS) from 5% to 20% potentially provides a substantial increase in government revenue.  

Preventing misuse of foreign exchange: The tax on international credit card transactions aids in the prudent management of foreign exchange by discouraging unnecessary or excessive foreign transactions. It prevents individuals from bypassing the LRS limits and potentially misusing foreign exchange.  

Encouraging responsible spending: The tax imposition encourages individuals to be more responsible and judicious about their overseas spending using credit cards. It might incentivize some individuals to reduce unnecessary overseas transactions and manage their finances more effectively.

Read more: Tax waived on annual forex spends up to ₹7 lakh: FinMin

What are the challenges faced in imposing Tax on international credit card transactions?

An additional burden on users: Imposing taxes on international credit card transactions adds an additional financial burden on card users. The Tax Collected at Source (TCS) increase can substantially add to the costs of overseas transactions.  

Complicated compliance process: The implementation of these tax rules may make the compliance process more complicated for both the users and the financial institutions. Capturing and reporting all such transactions could be a complex process, particularly when it involves international transactions.  

Risk of reduced spending: The increased tax burden may discourage individuals from spending overseas or using international credit cards. This could have an impact on the revenue of credit card companies and banks, and potentially affect the overall spending in the economy.  

Unclear guidelines: Currently, the guidelines regarding the tax on international credit card transactions are still being developed. There may be some ambiguity and confusion among card users and financial institutions until clear and detailed guidelines are released.  

What should be done?

Detailed guidelines: The Reserve Bank of India (RBI) and other relevant authorities should provide detailed guidelines and clarifications about the tax rules on international credit card transactions. This will help in the effective implementation of the rules and alleviate any confusion or ambiguity.  

Incorporation of technology: Financial institutions can incorporate technology to automate the process of capturing and reporting transactions subject to the new tax rules. This can help in the efficient implementation of the rules and also ease the compliance burden on the institutions.  

Clear communication and education: The government and financial institutions should communicate these changes effectively to all stakeholders, especially cardholders. They should explain the new rules, the rationale behind them, and how they will affect the users’ transactions.  

Review and feedback: The government should regularly review the impact of these tax rules and consider feedback from stakeholders. If the rules are causing significant inconvenience or financial burden, then necessary adjustments should be made.  

Strategic planning: Users of international credit cards should strategically plan their expenses and usage to ensure that they stay within the permissible limit of the LRS. They should also factor in the additional tax burden while planning their international spending. 

Sources: Business Standard, Indian Express, Livemint (Article 1 and Article 2), Finshots, Outlook India, The Hindu Businessline, Hindustan Times and Economic Times 

Syllabus: GS 3: Economic development: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Express View on new climate change report: It should lead to a review of Paris Climate Pact targets

Source: The post is based on the article “Express View on new climate change report: It should lead to a review of Paris Climate Pact targets” published in the Indian Express on 20th May 2023.

Syllabus: GS – 3: Environment and Bio-diversity: Conservation.

Relevance: About Global Climate 2022 report

News: Recently, the World Meteorological Organisation (WMO) released a report titled ‘State of the Global Climate 2022’. The report has warned that at least one of the next four years could be 1.5 degrees hotter than the pre-industrial average.

About the State of the Global Climate 2022 report

The WMO report pointed out that the global mean temperature last year was 1.15 degrees above pre-industrial levels.

Must read: State of the Global Climate 2022: The threat of rising sea levels

What is the status of the temperature increase in India?

The India Meteorological Organisation recorded 2022 as the fifth-warmest year on record since 2021, and the last decade as the hottest 10 years in the country’s history.

How are global countries impacted by climate change?

a) Floods in Pakistan claimed more than 1,500 lives and affected more than 30 million people, b)  Heatwaves led to record temperatures in several parts of Europe last year, leading to droughts and reduced river flows, and c) North America had its warmest August and forest fires raged in several parts of the US and Australia.

What should be done to mitigate the impact of climate change?

Need for greater investments: This is essential especially to build people’s resilience. Such as investments in a) risk-proof agriculture, b) building food security, c) developing flood and cyclone warning systems, and d) strengthening the defences of coasts and other vulnerable areas.

Increase adaptation funds to developing countries: A UN report last year noted that the international “adaptation finance flows to developing countries are 5-10 times below estimated needs and the gap is widening”. The upcoming COP-28 summit in Dubai must address this gap.

Must read:  Impact of Climate Change on Monsoon

About India’s economic growth: A sustainable growth rate

Source: The post is based on the article “A sustainable growth rate” published in the Indian Express on 20th May 2023.

Syllabus: GS – 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Relevance: About India’s economic growth.

News: In the past four decades and more, the structure of India’s economy has changed drastically.

What are the structural changes India witnessed in the past four decades?

Compared to 1980-81, using current prices, a) The share of “agriculture and allied activities” has dropped from 38% of GDP to 21%, b) The share of services has grown from 37% to 53%, c) Industry
(including construction and utilities) has remained more or less unchanged at 26%.

What does the structural change mean for overall economic growth?

Increase in life expectancy and associated benefits: Life expectancy was 54 years in 1980. But it is currently estimated at 70 years. This means the average Indian no longer dies in his/her working age.

This has improved productivity and increased the rapid spread of education, including post-school education, where enrolment levels have grown sharply.

Rate of investment: There is an increased rate of investment in fixed capital (up from 19.7% of GDP in 1980-81 to 28.6% before the pandemic).

Further, there is a high spread of digitisation.

Healthy economic growth: Indian economy’s potential for annual growth should have become at least 7%. In the two decades prior to the pandemic, India through many ups and downs averaged annual growth not far short of 7%.

Read more: India’s growth rate: Aiming for the high road

How did the pandemic impact India’s economic growth?

With the global economic slowdown post-pandemic, the International Monetary Fund (IMF) thinks India’s potential for growth has suffered and reduced the growth forecast. This is because with Covid India has a) more people falling back on low-productivity agriculture, b) a lower ratio of worker population to total population, c) damage to small and medium enterprises, d) a shortage of consumption and (consequently) investment demand, e) higher level of public debt, and f) government policy errors (like staying out of regional trade agreements).

What India needs to do to boost India’s economic growth?

India should make heavy investments in transport infrastructure. India should also raise the country’s capacity for generating growth and employment. This will revive the Indian economy.

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