Banking, Financial and Economic Awareness of 27 November 2019

1. Taxation Law (Amendment) Bill introduced in Lok Sabha

• The Taxation Law (Amendment) Bill has been introduced in Lok Sabha by the Union Finance Minister Nirmala Sitharaman.
• The bill proposes to provide an option for the domestic companies to pay the corporate tax at the rate of 22%, and for new domestic companies at the rate of 15%, provided these companies have not claimed certain deductions under the Income Tax Act.
• Currently, the corporate tax for the domestic companies with annual turnover of up to Rs. 400 crore is 25% while for other domestic companies it is 30%.

2. International Financial Services Authority Bill 2019

• Union Finance Minister introduced International Financial Services Centre Authority Bill, 2019 in Lok Sabha.
• The bill proposes to establish the International Financial Service Authority for the regulation of financial service market in IFSCs.
• The authority will be headed by a chairman and will consist of 8 other members, including one member each from RBI, SEBI, IRDAI, and PFRDA.
• The provisions of the Bill will be applicable to all IFSCs set up under the Special Economic Zones Act, 2005.
• All transactions of financial services in IFSCs will be done in Authority specified foreign currencies.
• The first international financial services centre (IFSC) was set up at GIFT City in Gandhinagar, Gujarat.

3. Medicines manufactured by 3 PSUs failed quality test

• 5 batches of medicines manufactured by three PSUs Bengal Chemicals and Pharmaceuticals (BPCL), Odisha Drugs and Chemicals Ltd (ODCL), and Hindustan Antibiotics Ltd (HAL)have failed quality tests and has been labelled as "not of standard quality" by CSDCO.
• BPCL and HAL have challenged the findings of the drug regulatory authority.
• ODCL is a joint venture of IDPL and Industrial Promotion and Investment Corporation of Odisha, while BPCL and HAL are Central Public Sector Enterprises.

4. CCEA approves the increase in authorized capital of FCI

• Cabinet Committee on Economic Affairs (CCEA) has approved the raising of FCI's authorized capital from current Rs. 3500 crore to Rs. 1,000 crore.
• With this decision, additional equity capital could be infused in the FCI, thereby reducing its overall debt and interest cost.
• Food Corporation of India (FCI):
  • It is a government organization that was established under the Food Corporation's Act 1964.
  • Headquarters: Chennai
  • It is the government's nodal agency responsible for the procurement and distribution of food grains.