Latest news with #Budget2025-26
Business Recorder
a day ago
- Business
- Business Recorder
OICCI demands implementation of tax reforms
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has called on the government to immediately implement long-delayed tax reforms, including a phased reduction in the corporate tax rate from 29 percent to 25 percent by 2030, to align Pakistan with regional economies and attract sustainable foreign direct investment. Declaring that Pakistan is at a crossroads, OICCI Secretary General M Abdul Aleem warned that the window for reform is rapidly closing, and stressed the need for a fair, predictable, and investment-friendly tax regime in the upcoming Budget 2025-26. 'If we want to attract sustainable investment, widen our tax base, and support economic growth; the time to act is now, and initiate long term tax reforms. OICCI's proposals are not just about reducing taxes, they're about creating a system that is fair, predictable, and future-ready.' Talking to Business Recorder on Budget proposals related to tax, the Secretary General said that every year the OICCI, after consultation with its members, put forward practical, data-backed recommendations to the government of Pakistan whose aim is to encourage investment, promote ease of doing business, and a growth-oriented tax system. OICCI seeks key tax reforms to increase tax-to-GDP ratio For Budget 2025–26, OICCI focused on five key areas including corporate tax rationalisation, broadening of the tax base, encouraging local manufacturing, supporting exports and green investments, and easing compliance for taxpayers. 'We have also proposed a gradual phasing out of the super tax; 6 percent this year, 3 percent next year, and full elimination by FY28,' he added. OICCI strongly believes the proposed action will encourage formalisation and ease the burden on compliant taxpayers who are currently facing a disproportionately high effective tax rate, he said. Aleem said that broadening the tax base remains a high-priority area and all sectors especially trade, agriculture, and services to be brought into the tax net proportionate to their share in GDP. It has observed that with some extra efforts there is data available in the overall banking and trade system to broaden the tax base. In addition, OICCI has also called for a timeline to phase out tax exemptions in FATA/ PATA, greater transparency in refund disbursements, and strict enforcement against the illicit tobacco trade. Copyright Business Recorder, 2025
Time of India
16-05-2025
- Business
- Time of India
Branding Delhi Campaign: Delhi tourism minister talks on campaign to showcase city as global tourism hub, ET HospitalityWorld
Advt Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETHospitalityWorld App Get Realtime updates Save your favourite articles Scan to download App The Delhi government is planning a "Branding Delhi" campaign with film festivals, tourism circuits and investment programmes to promote the city's rich cultural identity and transform it into a global hub. In a review meeting, the Delhi Minister of Tourism Kapil Mishra said, "Under the campaign, efforts will be made to showcase Delhi not just as a transit city but as a destination in itself, reflecting its historical heritage, vibrant arts, and contemporary urban character."Among the key initiatives discussed were hosting of an international film festival aimed at attracting filmmakers and promoting Delhi as a shooting location for films. It also includes an investment summit to draw interest from national and international investors and creating a new tourism circuit linking major sites such as the National War Memorial, Kartavya Path, Pradhanmantri Sangrahalaya, and the new Parliament must evolve from a transit point into a global tourism hub. This is not just a publicity exercise but a committed push to bring the pride of Delhi to the world stage, said campaign, supported by budgetary provisions under the Delhi Government's Budget 2025-26, also aligns with Chief Minister Rekha Gupta's broader vision to project the city as a "Developed Capital", he minister said the campaign will focus on digital outreach, global cultural collaborations, and improved visibility for both well-known and lesser-known tourist spots and called for a transparent and inclusive approach, inviting suggestions from stakeholders to strengthen the campaign.
Yahoo
28-02-2025
- Business
- Yahoo
Hong Kong embraces RISC-V open-source chip design to secure spot in China semiconductors
Hong Kong is betting on the RISC-V open-source chip architecture to drive innovation and secure a position in China's semiconductor landscape amid escalating US chip restrictions. The city, which is planning to host the International Young Scientist Forum on Artificial Intelligence, is promoting research in AI and open-source technology, particularly RISC-V, Finance Secretary Paul Chan Mo-po said in his 2025 budget address on Wednesday. RISC-V stands for the fifth generation of the Reduced Instruction Set Computer, a design philosophy for simplified architectures for central processing units (CPUs). As an open-source project, it is free for anyone to use and modify, unlike competing standards such as Intel's x86, a complex instruction set that dominates personal computers, and Arm's eponymous proprietary RISC-inspired architecture, which dominates the smartphone market. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. First developed in 2010 by researchers at the University of California, Berkeley, RISC-V is now managed by RISC-V International, a Zurich-based non-profit organisation. Financial Secretary Paul Chan Mo-po delivers the Budget 2025-26 speech in the Legco chamber on February 26. Photo: Elson Li alt=Financial Secretary Paul Chan Mo-po delivers the Budget 2025-26 speech in the Legco chamber on February 26. Photo: Elson Li> While not nearly as widely used as x86 or Arm, RISC-V has been rapidly gaining traction because of its open-source code base. This has been especially true in mainland China, where the government and businesses hope it can reduce reliance on foreign proprietary technology amid an intense tech war with the US. Last month, a team from the Chinese Academy of Sciences (CAS), a top government research organisation, announced that it would deliver its RISC-V-based XiangShan CPU this year. The team said earlier this month it had adapted XiangShan to support DeepSeek-R1, the popular open-source reasoning large language model developed by Hangzhou-based AI start-up DeepSeek. China is doubling down on RISC-V this year, with several large conferences based around the technology. Shanghai will host a RISC-V summit in July, the city announced earlier this week. The Beijing Institute of Open Source Chip, the CAS-backed XiangShan developer, is hosting a RISC-V ecosystem conference in the Chinese capital on Thursday, followed by a RISC-V conference on Friday organised by Damo Academy, Alibaba Group Holding's research arm that develops the XuanTie RISC-V processors. Alibaba owns the South China Morning Post. China's RISC-V push has alarmed US lawmakers, who last year called for a review of the national security risks associated with China's advancements in the area, potentially making it a new front in the chip war. However, regulatory options for the US to restrain China in this field are "limited", according to a November report from the Centre for Strategic and International Studies, which noted that RISC-V International operates outside the US. Hong Kong's ambitions to gain a foothold in RISC-V come amid efforts to become an innovation and technology hub, and play a greater role in China's technological development. Last year, the city said it was setting up its first production line for gallium nitride (GaN) wafers, a third-generation semiconductor material that offers advantages over traditional silicon-based semiconductors, including greater energy efficiency and reduced size. Related manufacturing equipment for this tech currently faces fewer US restrictions. RISC-V represents a "transformative opportunity" for China to achieve technological independence and to lead in semiconductor innovation, said Chan Jun-yu, a partner at Wings Capital Ventures, a Hong Kong-based venture capital fund. "Hong Kong can contribute to China's RISC-V ecosystem by attracting global applications, fostering international partnerships and serving as a hub for talent and investment," Chan said. Hong Kong's initiative to develop semiconductors, the "most important component" in all electronics products, could help the city contribute to China's needs and "solidify" its status as an international hub for innovation and technology, said Edmond Lai, chief digital officer at the Hong Kong Productivity Council. RISC-V is attractive because of its openness, flexibility and low cost, he added. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
Gulf Today
08-02-2025
- Business
- Gulf Today
India's central bank cuts repo rate by 25 bps to spur growth
The Reserve Bank of India's (RBI) six-member Monetary Policy Committee (MPC) on Friday cut the repo rate by 25 basis points to 6.25 per cent. RBI Governor Sanjay Malhotra said the MPC has also unanimously decided to continue with a neutral stance and will focus on inflation while supporting growth. This would provide flexibility to respond to the macroeconomic environment, he added. He said that inflation has declined and is expected to further moderate and gradually align with the RBI's target. Malhotra said the RBI was committed to providing sufficient liquidity in the economy and would take steps to ensure durable liquidity to meet the requirement of the system. He also said that the RBI was keeping a close watch on the rupee and was taking all steps to keep the Indian currency stable. Growth in the Indian economy is also expected to pick up growth momentum and rural demand has already revived, he said. However, there are uncertainties in global trade and climate change also poses a risk to growth, the RBI Governor said. Malhotra also said that the MPC felt that excessive volatility in global financial markets and global trade policies calls for the MPC to remain watchful. The RBI's monetary policy announcement comes close on the heels of the Budget 2025-26. The finance minister has decided to stick to the fiscal consolidation path with a reduction in the fiscal deficit target to 4.4 per cent of GDP for 2025-26 from 4.8 per cent earlier, which has reduced the need for market borrowing by the Government. This leaves more headroom for the RBI to adopt a soft money policy to spur growth. Malhotra, is a former finance ministry official and has already announced the injection of Rs 1.5 lakh crore in the banking system as the liquidity situation had become tight in the financial sector. The government has reduced its net market borrowings estimate for the 2025-26 financial year to Rs11.54 lakh crore which will leave more money in the banking system for giving out loans to corporates for investment and spur demand through consumer spending to accelerate growth. According to senior officials, both the fiscal measures announced in the budget and the RBI's monetary policy will be aligned to accelerate growth along with price stability. The Budget has rolled out significant income tax cuts for the middle class as 1 crore individuals earning up to Rs12.75 lakh a year will not pay any tax and will have more money in their hands to spend on goods and services. This will add to aggregate demand in the economy, giving a fillip to growth. The Reserve Bank of India (RBI) on Friday raised the country's real GDP growth forecast to real GDP growth for 2025-26 to 6.7 per cent, as it expects a robust rabi crop output and an expected recovery in industrial activity to support economic growth going ahead. It also expects CPI inflation to moderate to 4.4 per cent in the fourth quarter of the current financial year and decline further to 4.2 per cent in 2025-26. RBI Governor Sanjay Malhotra said that 'looking ahead, healthy rabi prospects and an expected recovery in industrial activity should support economic growth in 2025-26'. 'Among the key drivers on the demand side, household consumption is expected to remain robust aided by the tax relief in the Union Budget 2025-26,' Malhotra noted. 'Fixed investment is expected to recover, supported by higher capacity utilisation levels, healthy balance sheets of financial institutions and corporates, and Government's continued emphasis on capital expenditure,' Malhotra said in his address after the monetary policy committee (MPC) meeting. At the same time, he mentioned the risk to growth posed by global uncertainties and climate change. 'Taking all these factors into consideration, real GDP growth for 2025-26 is projected at 6.7 per cent with Q1 at 6.7 per cent; Q2 at 7.0 per cent; and Q3 and Q4 at 6.5 per cent each. The risks are evenly balanced,' said the RBI Governor. The RBI had in December revised its GDP growth forecast to 6.6 per cent from 7.2 per cent earlier. He pointed out that the global economy is growing below the historical average even though high frequency indicators suggest resilience amidst continued expansion in world trade. The world economic landscape remains challenging with slower pace of disinflation, lingering geopolitical tensions and policy uncertainties, he added. Malhotra also said that the strong US dollar continues to strain emerging market currencies and enhance volatility in financial markets. In this context he mentioned that the RBI was keeping a close watch on the depreciation of the rupee and taking all steps to stabilised the Indian currency.
Times of Oman
30-01-2025
- Business
- Times of Oman
20 per cent capex growth crucial for boosting India's GDP: EY report
New Delhi: The upcoming union budget should increase the capital expenditure (Capex) by at least 20 per cent to revive domestic demand, private consumption and ensure sustainable GDP growth says the EY Economy Watch January 2025 report. It says the government is expected to continue on its fiscal deficit reduction path, bringing it down to 4.4 per cent of GDP in FY26. A strategic focus on investment and spending reforms will help balance fiscal prudence with economic expansion. DK Srivastava, Chief Policy Advisor at EY India, said, "As we navigate a challenging economic landscape, the upcoming budget must balance fiscal prudence with growth-oriented measures. Increasing capital expenditure and putting more disposable income in the hands of consumers, particularly urban consumers, will be pivotal to uplifting growth in domestic demand." Despite global economic uncertainties and currency depreciation pressures, Srivastava noted, "With the right fiscal policy initiatives and reforms, India can continue progressing toward its long-term targets. With an average annual nominal GDP growth of 10.5 per cent, and even assuming a relatively higher annual depreciation rate of the INR/USD at close to 3.5 per cent, India would still achieve the USD 5 trillion economy milestone by FY30." The EY report outlines four key areas that should be prioritized in Budget 2025-26 to stimulate economic growth. First, infrastructure investment should be increased by at least 20 per cent to drive economic activity and long-term development. Second, reforms in personal income tax should be introduced to boost private consumption, particularly for lower middle-income groups, increasing their disposable income. Third, rationalizing import tariffs is essential to strengthen domestic manufacturing and reduce import dependency. Finally, maintaining a stable inflationary environment will create room for interest rate cuts, encouraging private investment. On the fiscal front, EY India estimates the fiscal deficit for FY25 at 4.8 per cent of GDP, slightly lower than budget expectations due to reduced capital expenditure. The report says retail inflation (CPI) showed signs of moderation in December 2024, standing at 5.2 per cent, with core inflation steady at 3.7 per cent. These trends suggest a possible reduction in policy rates by 50 basis points in FY26, which could further support private investment. The report also evaluates fiscal transfers to states, following strategies recommended by the 14th and 15th Finance Commissions. As the 16th Finance Commission deliberates on new recommendations, EY suggests that fiscal transfers should aim for equitable distribution of resources across states. They should also be subjected to hard budget constraints to ensure responsible spending. Additionally, incentives should be provided to states prioritizing education, health, and revenue generation, while conditional and specific-purpose grants should be reintroduced to address state-specific needs.
