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    From oil bonds to cryptocurrency, FM Nirmala Sitharaman clears govt's stand on key issues

    Synopsis

    On the key issue of fuel pricing, the finance minister remained non-committal on cut in excise duty on petrol and diesel, saying payments in lieu of past subsidised fuel pose limitations.

    FMAgencies
    Speaking on the economy during the interaction, she expressed confidence that the upcoming festive season is expected to be better and revenue is likely to buoyant in the coming months.
    Finance Minister Nirmala Sitharaman on Monday communicated government's stand on important matters such as cryptocurrency, retrospective taxation and keeping inflation within the comfort band.

    On the issue of fuel pricing, the finance minister remained non-committal on cut in excise duty on petrol and diesel, saying payments in lieu of past subsidised fuel pose limitations.

    Breaking down the official stand on key issues:

    1. On cryptocurrency- The FM said she is awaiting an approval from the Cabinet on bill on cryptocurrency as the proposed legislation is before it. The Supreme Court in March allowed banks and financial institutions from providing services related to cryptocurrencies by setting aside the RBI's 2018 circular which had prohibited them.

    2. Retrospective taxation- She said the rules that will lead to the scrapping of the retrospective tax demands made on companies such as Cairn Energy Plc and Vodafone Plc will be framed soon. Parliament earlier this month passed a bill to scrap a tax rule that gave the tax department power to go 50 years back and slap capital gains levies wherever ownership had changed hands overseas but business assets were in India.

    3. On technical glitches in I-T portal- Technical glitches in the new income tax e-filing portal will be largely fixed in the next few days, assured the FM. "I been constantly reminding Infosys about the issue," said Sitharaman. The new income tax e-filing portal 'www.incometax.gov.in' had a bumpy start from the day of its launch on June 7 as it continued to face technical glitches.

    4. FM rules out excise cut on petrol, diesel- As petrol prices in the country remain unchanged for the last one month after reaching a record high in July, FM today ruled out a cut in excise duty on petrol and diesel. Blaming the Congress-led UPA, the she said that the govt has to pay off the oil bonds and the interest thereon, issued by the previous regime to state fuel retailers in lieu of the subsidised rates of petrol and diesel as well as cooking gas and kerosene.

    5. Inflation to remain in range of 2-6%- The finance minister reiterated that India's inflation rate is likely to be in the range of 2 to 6 per cent. In July, the Consumer Price Index (CPI) slipped to 5.59 per cent from 6.26 per cent in June.

    Speaking on the economy during the interaction, she expressed confidence that the upcoming festive season is expected to be better and revenue is likely to buoyant in the coming months. Sitharaman aslo added that she expected that the revenue would be buoyant in the coming months. Both Goods and Services Tax (GST) and direct taxes have improved in the past few months, she said.


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