🏎️ Race For the Budget

by Yash Gohel

Hey,


The $1.2B check which should have been in Cairn Energy’s bank, ain’t even in their inbox. And just like the government seizes assets of companies, Cairn has threatened to seize Indian assets abroad. They said, “necessary preparations have been put in place.” And assets under consideration include Embassy bank accounts, non-diplomatic premises, Air India planes, and even ships in the U.K., Holland, France, Canada, and the U.S.


Essentially, seizure in the absence of a settlement only and only if the Indian government did not respond.


🏎️ Race For the Budget



Dang! The automobile industry is wobbling from a 19-year sales low.📉 Your inboxes and news feed 📥 might be choking with pre-Budget expectations. But this sector might take the cake when it comes to expectations. Hopes are pinned but the government seems to support the EV sector more…


🤒 Automakers are suffering. COVID19 hit them like their own wagon. The high 18% GST slab rate has caused many major giants like Harley Davidson, Fiat, General Motors, Eicher Polaris, and UM Motorcycles to quit India. Not to forget Toyota’s plea during the pandemic.


📢 The Appeal. Industry bodies are making an appeal for a lower Goods and Services Tax (GST) rate on personal vehicles. Although the back-to-back festival seasons have helped them pick up demand, the industry is still damaged.🤕 It needs to pick up the pace and get back on track in 2021. The government needs to reflect upon the fast the auto-sector is a mighty job creator.


👨‍👦 Handholding Support. The BS6 transition led to a good hike in price. But the lawmakers in the parliament did not consider reducing the GST. Instead, they announced a ‘handholding support’ for the Indian automotive component industry for technology upgradations, research and development, and business strategy planning.


🧐 Budget’21 Expectations. India is trying hard to become the world’s leader in the renewable energy sector. Electric vehicles play a huge role. And with the recent entry of Tesla with HQ in Bangalore, you cannot deny that. Now, what will make you chose an🔌Electric Vehicle over a Hybrid? The price difference between the two. Now if the Budget axes the GST on Hybrids, it might hurt the ‘energy-sector’ goals. And no matter what incentive it rolls out in the EV segment, a Hybrid will always be more pocket-friendly than an INR 60 lakh Tesla.


It is Autos against the EVs.


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🎬 Crazy Tax Story – UK Film Tax Relief



Let’s Crunch Some Numbers. £522m in UK FTR (film tax relief) was paid out to qualifying UK films in 2019-20 and £324m of HETVF (high-end television tax relief) was paid to 290 claims, representing 275 programs. FTR still accounts for almost half of all the Creative Industries tax reliefs (£1.11bn) paid out in 2019-20 whilst High-end Television Tax Relief (HETVF) is now almost 30%, up from 22% the previous year.


What is all this tax relief about, you ask?


In 2007. The United Kingdom started a Film Tax Relief. Ever since, it has encouraged productions into the country – with blockbusters including The Bourne Ultimatum, Gravity, The Dark Knight Rises, The Martian, Fast & Furious 6, and Star Wars: The Force Awakens all making use of the UK’s world-class industry. By 2015, the film tax relief was broadened, and reliefs for high-end television, animation for broadcast, video games, and children’s television.


But How Much? 25% of the qualifying expenditure. There is no cap on the amount of tax relief that can be claimed by the production company. But all reliefs are capped at 80% of the total production budget.


And How’d One Qualify?You can only access the tax relief if your project:


Qualifies as British – either by passing the relevant BFI Cultural Testor by qualifying as an official co-production.


Reaches a minimum UK core expenditure of 10-25% (dependent on the tax relief you are claiming). This includes projects made as official co-productions.


To access the high-end television, children’s, and animation reliefs, your project must be intended for broadcast (television or internet), while film projects must be intended for theatrical release.”


The UK Film Tax Relief is definitely striving to keep the ‘British culture’ alive!


💭 Byte of The Day


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