India’s Losing Battle With Food Prices | What Are the Big Corporate Tax Issues? | The Core Report
239 بار بازدید -
2 ماه پیش
-
On Episode 339 of The
On Episode 339 of The Core Report, financial journalist Govindraj Ethiraj talks to D K Joshi, chief economist at Crisil Ratings as well as Dwarak Narasimhan, Partner at Price Waterhouse & Co LLP.
SHOW NOTES
• (00:00) The Take
• (03:55) Stories Of The Day
• (04:41) Markets on holding pattern, earnings in spotlight.
• (06:56) India’s losing battle with food prices
• (18:24) New taxes to discourage companies from moving headquarters are coming
• (28:58) Lufthansa says high prices are causing business travel to shrink, American carriers too report tougher times despite strong traffic
Stock Markets Ahead:
Last week, stock markets performed well, but the upcoming week is shorter due to the Muharram holiday on Wednesday. The BSE Sensex closed up 523 points at 80,519.34, while the Nifty50 index rose by 178.35 points to 24,502.20. On Friday, both indices hit record highs. The IT sector showed a resurgence, and oil and gas sectors also performed well, though banks, realty, and auto sectors dipped. This week marks the beginning of Q1 results announcements, with expectations for steady growth despite challenges like erratic weather impacting consumer-facing companies. Companies like Reliance Industries, Bajaj Auto, BPCL, Asian Paints, and Infosys are set to announce their results. HCL Tech reported a 20.4% rise in consolidated net profit for the June-ended quarter, with a revenue growth guidance of 3-5% for FY25.
Inflation Rises, Food Inflation’s Vice Like Grip:
June's retail inflation hit a four-month high of 5.08%, driven by a jump in food inflation to over 9%, the highest in six months, according to the National Statistical Office. Extended heatwaves have pushed up vegetable prices by 29.32% in June. With the monsoon season underway, there's hope that food inflation may cool down. I spoke with Crisil Ratings' chief economist D K Joshi about the persistent high food prices and their broader implications.
Direct Taxes Up:
Direct tax collections have surged by nearly 20% to ₹5.74 lakh crore in FY25 so far, boosted by an increase in personal income tax receipts. The deadline for filing returns for the assessment year 2024-25 is July 31. Rising corporate profits suggest strong Q1 results, which bode well for market performance in the near to medium term. Net corporate tax collection stood at ₹2.10 lakh crore, up 12.5%, and personal income tax collection increased by 21.4% to ₹3.46 lakh crore.
What Are the Big Corporate Tax Issues?
With the Union Budget set for July 23, there is anticipation that India may adopt the OECD's "Pillar-2" tax regime to combat tax avoidance by multinationals. This global minimum tax aims to prevent profit shifting, targeting an Effective Tax Rate (ETR) of 15%. I discussed the potential implications with Dwaraknath EN, Partner at Price Waterhouse & Co LLP, who provided insights into the key corporate tax concerns for Indian companies.
Lufthansa Cuts Back:
Lufthansa is reducing costs and scaling back future projects amid a "new reality" of reduced corporate travel and increased competition, which has led to lower than expected unit revenues. The airline's CEO, Jens Ritter, noted that the normalization in the market is characterized by high competitive pressure. Delta Air Lines also indicated a weak outlook for Q3, with business travel not expected to rebound soon. The shift towards more leisure travel during summer rather than winter is reshaping travel patterns. This update raises questions about how airlines in Asia and the Middle East are adapting to these changes.
#IndiaFoodPrices #corporatetax #stockmarket #sensex #nifty50 #q1results2024 #inflation #foodinflation #retailinflation #monsoonseason #relianceindustries #bajajauto #infosys #hcltech #DirectTaxes #PersonalIncomeTax #CorporateProfits #unionbudget #GlobalTax #airlineindustry #govindrajethiraj #thecorereport #thecore #financenews
Listeners! We await your feedback.... (https://tinyurl.com/TCR-Listener-Survey)
To collaborate with our Core Brand Studio contact [email protected]
For more of our coverage check out thecore.in (https://www.thecore.in/)
Support the Core Report (https://thecore-in.mojo.page/support-...) --
Join & Interact anonymously on our whatsapp channel (https://whatsapp.com/channel/0029Va5t...)
Subscribe to our Newsletter (https://www.thecore.in/category/podca...)
Follow us on:
Twitter (Twitter: the_core_in)
Instagram (Instagram: the.core.in)
Facebook (Facebook: thecore.biz)
Linkedin (LinkedIn: thecore-in)
Youtube (@thecore_in)
SHOW NOTES
• (00:00) The Take
• (03:55) Stories Of The Day
• (04:41) Markets on holding pattern, earnings in spotlight.
• (06:56) India’s losing battle with food prices
• (18:24) New taxes to discourage companies from moving headquarters are coming
• (28:58) Lufthansa says high prices are causing business travel to shrink, American carriers too report tougher times despite strong traffic
Stock Markets Ahead:
Last week, stock markets performed well, but the upcoming week is shorter due to the Muharram holiday on Wednesday. The BSE Sensex closed up 523 points at 80,519.34, while the Nifty50 index rose by 178.35 points to 24,502.20. On Friday, both indices hit record highs. The IT sector showed a resurgence, and oil and gas sectors also performed well, though banks, realty, and auto sectors dipped. This week marks the beginning of Q1 results announcements, with expectations for steady growth despite challenges like erratic weather impacting consumer-facing companies. Companies like Reliance Industries, Bajaj Auto, BPCL, Asian Paints, and Infosys are set to announce their results. HCL Tech reported a 20.4% rise in consolidated net profit for the June-ended quarter, with a revenue growth guidance of 3-5% for FY25.
Inflation Rises, Food Inflation’s Vice Like Grip:
June's retail inflation hit a four-month high of 5.08%, driven by a jump in food inflation to over 9%, the highest in six months, according to the National Statistical Office. Extended heatwaves have pushed up vegetable prices by 29.32% in June. With the monsoon season underway, there's hope that food inflation may cool down. I spoke with Crisil Ratings' chief economist D K Joshi about the persistent high food prices and their broader implications.
Direct Taxes Up:
Direct tax collections have surged by nearly 20% to ₹5.74 lakh crore in FY25 so far, boosted by an increase in personal income tax receipts. The deadline for filing returns for the assessment year 2024-25 is July 31. Rising corporate profits suggest strong Q1 results, which bode well for market performance in the near to medium term. Net corporate tax collection stood at ₹2.10 lakh crore, up 12.5%, and personal income tax collection increased by 21.4% to ₹3.46 lakh crore.
What Are the Big Corporate Tax Issues?
With the Union Budget set for July 23, there is anticipation that India may adopt the OECD's "Pillar-2" tax regime to combat tax avoidance by multinationals. This global minimum tax aims to prevent profit shifting, targeting an Effective Tax Rate (ETR) of 15%. I discussed the potential implications with Dwaraknath EN, Partner at Price Waterhouse & Co LLP, who provided insights into the key corporate tax concerns for Indian companies.
Lufthansa Cuts Back:
Lufthansa is reducing costs and scaling back future projects amid a "new reality" of reduced corporate travel and increased competition, which has led to lower than expected unit revenues. The airline's CEO, Jens Ritter, noted that the normalization in the market is characterized by high competitive pressure. Delta Air Lines also indicated a weak outlook for Q3, with business travel not expected to rebound soon. The shift towards more leisure travel during summer rather than winter is reshaping travel patterns. This update raises questions about how airlines in Asia and the Middle East are adapting to these changes.
#IndiaFoodPrices #corporatetax #stockmarket #sensex #nifty50 #q1results2024 #inflation #foodinflation #retailinflation #monsoonseason #relianceindustries #bajajauto #infosys #hcltech #DirectTaxes #PersonalIncomeTax #CorporateProfits #unionbudget #GlobalTax #airlineindustry #govindrajethiraj #thecorereport #thecore #financenews
Listeners! We await your feedback.... (https://tinyurl.com/TCR-Listener-Survey)
To collaborate with our Core Brand Studio contact [email protected]
For more of our coverage check out thecore.in (https://www.thecore.in/)
Support the Core Report (https://thecore-in.mojo.page/support-...) --
Join & Interact anonymously on our whatsapp channel (https://whatsapp.com/channel/0029Va5t...)
Subscribe to our Newsletter (https://www.thecore.in/category/podca...)
Follow us on:
Twitter (Twitter: the_core_in)
Instagram (Instagram: the.core.in)
Facebook (Facebook: thecore.biz)
Linkedin (LinkedIn: thecore-in)
Youtube (@thecore_in)
2 ماه پیش
در تاریخ 1403/04/24 منتشر شده
است.
239
بـار بازدید شده