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Bhavyarani

1. Indirect taxes such as GST generate 53% of the Indian government's tax revenue according to the 2022-23 budget estimates. GST revenue was estimated to be Rs. 7.8 lakh crore compared to Rs. 7.2 lakh crore from corporate tax and Rs. 7 lakh crore from income tax. Indirect taxes are considered regressive as the burden falls on all citizens regardless of ability to pay. 2. The Adani Group, an Indian conglomerate operating in energy, resources and other industries, lost 29% of its market value over 3 days following a report alleging accounting fraud and manipulations. Shares of Adani group companies fell sharply, er

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Chelsi Gehlot
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39 views

Bhavyarani

1. Indirect taxes such as GST generate 53% of the Indian government's tax revenue according to the 2022-23 budget estimates. GST revenue was estimated to be Rs. 7.8 lakh crore compared to Rs. 7.2 lakh crore from corporate tax and Rs. 7 lakh crore from income tax. Indirect taxes are considered regressive as the burden falls on all citizens regardless of ability to pay. 2. The Adani Group, an Indian conglomerate operating in energy, resources and other industries, lost 29% of its market value over 3 days following a report alleging accounting fraud and manipulations. Shares of Adani group companies fell sharply, er

Uploaded by

Chelsi Gehlot
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment 1

Name : Bhavya Rani


Course : BBA 3rd year
Enrolment No. : 200154
Subject : Derivatives and Risk Management
Topic : News Analysis
Submitted To : Mr. Sumit Kulshreshtha
1. Indirect Taxes generate 53% of Government Tax
Revenue:
Analysis:
Indirect taxes are commonly used and imposed by the
government in order to generate revenue. They are
essentially fees that are levied equally upon taxpayers, no
matter their income, so rich or poor, everyone has to pay
them. The word “taxpayer’ is used by middle class
people of India to refer to those who pay income tax, but
the biggest chunk of the government’s tax revenue
actually comes from goods and services tax (GST),
which is paid by even the poorest. This is followed by
corporation tax, paid by corporates on their profits,
though individual income tax is a close third.

The 2022-23 Budget estimate of revenue earned from


GST was Rs 7.8 lakh crore compared to Rs 7.2 lakh
crore from corporation tax and Rs 7 lakh crore from in-
come tax. The actual revenue in 2020-21, the Covid 19
year. Saw GST netting Rs 5.5 lakh crore. Corporation tax
yielded just Rs 4.6 lakh crore lower than the income tax
collection of Rs 4.9 lakh crore, thanks to the impact of
the pandemic on corporate revenues and profits. Indirect
taxes, which are paid by all citizens, whether rich or
poor, include GST, customs & excise duties and the
erstwhile service tax. In India, indirect taxes constitute
about half of total taxes collected. Tax systems with a
high component of indirect taxes are considered
regressive since the burden of such taxes falls on every
one irrespective of their capacity to pay unlike direct
taxes such as taxes on income or on profits of companies,
which only apply to those with incomes above a
threshold level or to firms that are profitable.

Developed nations mostly collect tax revenues from


direct taxes. “Among OECD countries, indirect taxes
(such as VAT and GST) account for about one-third of
total tax revenues. The bulk of their tax revenues
(roughly 66%) come from direct taxes such as income,
corporate, proper ty, payroll taxes, etc,” pointed out
Reetika Khera, professor of economics at IIT-Delhi.

At the time of independence, India was struggling to


generate revenue as there and only a small tax base of
individual taxpayers. Hence, through the 1950s and right
up till the 1990s, up to 80% of revenue was generated
from indirect taxes. According to the receipts in Budget
2022-23 Were 6.3 crore individuals who filed income tax
re turns for the financial year 2019-20. The annual report
of the periodic labour force survey for the period from
July 2020 to June 2021, released in June 2022, said only
41.6% of India’s total population, or 56 crore, people are
“usually employed” or looking for work. That means
only about 11% of the labour force file income tax
returns. With poor quality employment and low wages,
the proportion of those earning more than Rs 2.5 lakh per
annum or about Rs 21,000 a month, the level above
which income tax applies is very small.
There would of course be many evading taxes, but the
bulk of India’s population simply doesn’t earn enough to
even fall within the tax bracket. Meanwhile,the tax rate
on corporates has steadily come down from 50% in the
1990s to 30%, which is in line with many large
economies

About 25% in China and the US, and about 30% in


Germany and Japan. India tries to keep corporate taxes
low to keep it competitive internationally. But this, along
with a very low individual income tax base, means
boosting the share of direct taxes in the total task kitty is
a tall ask.

2. Adani Group loses 29% market value in 3 days as


Carnage Continues
Analysis:
The Adani Group is a conglomerate headquartered in
India that operates in various industries such as energy,
agribusiness, resources, logistics, and real estate. They
are known for their large-scale infrastructure projects,
including developing ports, airports, and power plants.

It is a highly diversified company interested in ports,


agribusiness, logistics, power, solar and renewable
energy. The group was founded by Gautam Adani in
1988 and has since grown to become one of the largest
conglomerates in India.

Why Adani Group is constantly losing its market


value?

A report by Hindenburg Research alleging accounting


frauds, stock manipulations and money laundering last
week led to negative sentiment around the Adani Group
stocks in the last three sessions. Adani Group called
Hindenburg’s report as maliciously mischievous and not
properly researched, which, it said, adversely affected the
Adani Group, its shareholders and investors.

Adani group had said that the timing of the Hindenburg


report’s publication clearly betrays a brazen, mala fide
intention to undermine the group’s reputation with the
principal objective of damaging the follow-on public
offering from Adani Enterprises, which is the biggest
FPO ever in India.Shares of Adani Power crashed 5 per
cent to Rs 236.65 amid positive sentiment in the broader
market today. The stock has lost 15% in the last three
sessions. 
In all, about 29% of the group’s market capitalisation, or
about Rs 5.6 lakh crore, has been eroded in the last three
trading sessions. (31 Jan,2023).
Hitting back at Adani Group’s claim that Hindenburg’s
allegations were a “calculated attack on India”, the firm
said “fraud cannot be obfuscated by nationalism”.
“India’s future is being held back by the conglomerate,
which has draped itself in the Indian flag while
systematically looting the nation,”

Source : Times of India

Thank you!!!

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