Newspaper Must Read Articles of The Day – 23 August 2015

Front Page/National

• As sparring worsens, NSA talks are off : Pakistan accused India of “concocting terror incidents and keeping the LoC [Line of Control] hot”, while India said Pakistan was using firing at the LoC and terror attacks to “run away from the talks”.

• Suspend licence of traffic offenders: SC panel: A Committee instituted by the Supreme Court has directed State governments to suspend, at least for three months, driving licences of those committing offences such as speeding, driving under the influence of intoxicants and use of mobile phones behind the wheel. Joint counseling sessions for two-wheeler riders – drivers and those pillion-riding – for violating helmet laws recommended. The same is suggested for four-wheeler users who do not fasten seat belts. Imprisonment for drunk driving has also been recommended.

• Smart Cities project to take off in October, says Venkaiah: The Centre will launch the much-publicised Smart Cities project in October. The concept will be implemented first in 20 of the 100 cities to be included in the project in a phased manner. The Smart Cities’ focus would be on improving infrastructure facilities to make them liveable smartly apart from improving revenue and resources; generating energy and compost from the solid waste would also be among the top priorities.

• Pakistan violated Shimla pact, Ufa spirit: Sushma: Pakistan’s decision to invite the Hurriyat leadership for a meeting was “against the Shimla agreement” that stipulated only bilateral talks, and no “third party”. Pakistan’s National Security Adviser Sartaj Aziz to bring up the Kashmir issue was “against the spirit of Ufa”.

• WTO is best forum for negotiating and settling differences: Nirmala: Dr. Sitharaman stated that WTO can’t just be a trade forum it had to keep in mind development. The WTO has to perform the role of speaking for all its members and ensure that certain [items on the] development agenda are also taken up and met with to the satisfaction of all its members; the time was especially significant for tackling issues related to LDCs (least developed countries) and development because the conference was being held for the first time in Africa.

International/World Affairs

• Sirisena begins Tamil resettlement in Sampoor:

  Mr. Sirisena assured Tamils of the Northern and Eastern Provinces that his government would work wholeheartedly to provide them facilities and opportunities on a par with what was being made available to people in other parts of the country. A Ministry will be created to pursue closely the matters of reconciliation and brotherhood.

• Koreas hold talks to defuse tension: North and South Korea sat down to urgent top-level talks Saturday, seeking some way out of an escalating crisis that has pushed both their militaries to the brink of an armed conflict.

• Khmer Rouge ‘first lady’ dies: Ieng Thirith, a Khmer Rouge leader who was the highest-ranking woman in the genocidal regime that oversaw the death of nearly 2 million Cambodians in the late 1970s.

Economy/Business

• Shah panel’s recommendation on MAT positive for market: Jayant Sinha: A.P. Shah Committee’s recommendation to grant relief to foreign institutional investors (FIIs) on Minimum Alternate Tax (MAT) will be a positive for the market. The panel, headed by Law Commission Chairman A.P. Shah, was set up to resolve the dispute between FIIs and the government after notices were served to 68 FIIs by the Income Tax Department demanding Rs.602 crore as MAT dues.

• Centre likely to waive retrospective tax on FIIs: The Centre is likely to waive the controversial minimum alternate tax (MAT) on capital gains made by Foreign Institutional Investors, (FIIs) prior to April 1, 2015. FIIs have argued that MAT is applicable only to domestic companies that had their base in India. By virtue of not being established in India, they should be ‘exempted.’ They have also alleged inconsistency and called for avoiding arbitrary application.

• Tax structure not biased against foreign firms: Foreign companies currently have to pay tax in India at the rate of 40 per cent. Domestic companies have to pay tax at a rate of 30 per cent and they have to pay dividend distribution tax on top of that, which can often work out to be more than 40 per cent.

• Banks seek shareholders’ nod for capital infusion: Four public sector banks, including Punjab National Bank (PNB) and Bank of Baroda (BoB), on Saturday sought shareholders’ approval for capital infusion of Rs.5,934 crore by issuing preferential shares to the government.

• ‘East, NE to gain most from payments banks’: Ratings and research firm Crisil has said east, north-eastern and central India will gain the most from payments banks while the market share of existing banks is unlikely to be impacted. East, north-east and central India offer a natural habitat for payments banks because of under-penetration of formal banking in these regions. Payments banks will open another alternative channel after Internet and mobile banking, and help improve efficiencies and reduce costs involved in catering to customers in rural and semi-urban areas.