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Excise duty withdrawal detrimental to demand: Assocham
New Delhi: A day after the central government did not extend the excise duty concessions provided to the automobile and consumer durables sector in 2015, India Inc. Wednesday said the move will hit demand.
According to Associated Chambers of Commerce of India (Assocham), the withdrawal of excise duty concessions comes at a time when manufacturing output has declined by over four percent in October.
The industry lobby also cited that consumer durables sector reported a huge drop of over 35 percent and motor vehicles segment fall by 9.8 percent, and that bringing these segments into higher excise duty regime will spell a deathknell for consumer demand.
“This is not surely in keeping with the spirit of Make in India. The Make in India’s first priority should be to revive industrial growth through lower cost of production and lower price tag for the consumer so that demand can be revived,” said D.S. Rawat, secretary general, Assocham.
Rawat said the government’s efforts on pushing for reforms and ease of doing business will become irrelevant as consumer demand and purchasing power will get affected by this move.
The Narendra Modi-led NDA government in June extended the excise duty concessions of the previous UPA government by six months to Dec 31, but they will not be extended further, a finance ministry source told IANS.
In order to boost the auto sector, excise duty was reduced to 24 percent from 30 percent for SUVs, 20 percent for the mid-sized segment from 24 percent, and 24 percent for large cars from 27 percent.
This, combined with the effect of cuts in fuel prices, led to 9.5 percent spurt in November car sales at 1,56,445 units, up compared to 1,42,849 units in the same month of 2013, according to the Society of Indian Automobile Manufacturers (SIAM).
Overall, the auto industry grew of 10.01 percent in the April-November period this fiscal at 13 million units, as against 12 million in the same period a year ago, following two successive years of slump.
Car manufacturers have been asking the government to extend excise duty relief, saying withdrawal of the incentive could push automobile prices up further next year.
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.