The obstacles ahead for the goods and services tax got tougher on Thursday after talks between state governments and the center ended with little progress made. States don’t want to give up their powers that let them levy taxes unilaterally. And there are now indications the eventual rate for GST may be greater than the target of 12%. The government has promoted GST a major tax reform initiative that will incorporate several taxes levied at both the state and central levels.
Food prices have increased again, but at a slower rate. The food price index rose 18.22% in the week ending 26 December. That’s a slight fall from the previous week, when food inflation stood at 19.83%. Food prices have been driven up in recent months by a drought, floods in parts of India and also higher government prices for farmers.
ArcelorMittal could shift the locations of some of its steel projects in India. The company is asking the Karnataka government for a green light to set up a steel plant in that state. ArcelorMittal already has plans to build plants in Orissa and Jharkhand, but has faced problems over land acquisition.
Maruti Suzuki unveiled a brand new car on Thursday, the third day of the Auto Expo in Delhi. The multi-purpose vehicle, which is called Eeco, was conceived and designed specifically for the Indian market. Maruti also said it would make a decision on increasing the prices of its cars after completing negotiators with its vendors… Companies like Fiat India and Toyota Kirloskar have already announced price hikes to cope with rising prices of raw materials like steel.
Toyota launched its hybrid car the Prius in India at the Auto Expo. The Prius is world’s most commercially successful hybrid car with more than 1.5 million units sold worldwide.