Latest news with #DTA
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Business Standard
2 days ago
- Business
- Business Standard
DGFT should rethink provisions for deemed exports from DTA to EoU
Para 7.01(i) of the Foreign Trade Policy (FTP) says 'deemed exports' for this FTP refer to those transactions in which goods supplied do not leave the country Listen to This Article We have a domestic tariff area (DTA) unit and an export-oriented unit (EoU) within the same state under the same goods and services tax identification number (GSTIN). We want to send the goods manufactured in the DTA unit to EoU for use as an input in the goods manufactured by the EoU. Can we get deemed export drawback benefits on such supplies? Para 7.01(i) of the Foreign Trade Policy (FTP) says 'deemed exports' for this FTP refer to those transactions in which goods supplied do not leave the country, and payment for such supplies is received either in Indian rupees
Scoop
16-07-2025
- Business
- Scoop
Updates To Deposit Takers Act Implementation Timeline And Standards
The Reserve Bank of New Zealand - Te Pūtea Matua has today published an updated implementation timeline for incoming changes to the prudential regulatory regime for deposit takers. The Deposit Takers Act 2023 (DTA) modernises the regulatory framework to help ensure the safety and soundness of deposit takers and support a stable financial system that New Zealanders can trust. DTA standards will be issued by 31 May 2027 and come into effect on 1 December 2028. 'The standards bring to life the prudential requirements deposit takers will need to meet to be licensed under the DTA,' Director Prudential Policy Jess Rowe says. Public consultation on the proposed standards took place across 2024 and 2025. 'We're grateful for the insightful feedback received from submitters, and we're now hard at work preparing the exposure drafts of the standards,' Ms Rowe says. Exposure draft consultation will take place in three tranches, starting in October 2025. Licensing of existing deposit takers will occur over an 18-month window, running from 1 June 2027 to 30 November 2028, ahead of the standards coming into effect on 1 December of that year. The change means all banks and non-bank deposit takers will be licensed under a single, coherent regulatory regime. In late 2025, we hope to communicate information about our approach to licensing existing deposit takers under the DTA. Changes to the DTA implementation timeline were necessary to allow time for a review of key capital settings, announced on 31 March 2025. DTA standards were previously planned to come into effect in July 2028. Response to submissions on the non-core standards In 2024, we received 25 submissions to public consultation on DTA non-core standards. In response to feedback, we have made changes to further support a proportionate approach, reduce the impact of compliance on deposit takers, and enhance potential competition in the market. Changes resulting from consultation include removing prescriptive detail and making requirements more flexible in certain areas. Our overall assessment remains that we are striking a good balance between our primary financial stability mandate and our purposes and principles, including proportionality and competition. Terminology explained Core standards These are the standards that we will use as the criteria to determine the eligibility of existing banks and NBDTs for relicensing under the DTA. Non-core standards These are the other standards that all deposit takers will need to comply with when the DTA standards regime starts but will not be used for relicensing existing deposit takers. Deposit takers will need to comply with all standards when they come into force in 2028.
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Business Standard
13-07-2025
- Business
- Business Standard
SEZ amendment Bill may be taken up in monsoon session of Parliament
The Bill will allow 'reverse job work'. This means that SEZ units will be able to do a part of the manufacturing process on its behalf for DTA units Shreya Nandi New Delhi Listen to This Article The Special Economic Zone (SEZ) Amendment Bill — to overhaul the existing two-decade old law — is likely to come up in the monsoon session of Parliament. Prior to this, the commerce department is set to seek approval of the Union Cabinet for the new Bill to modernise India's SEZ framework. The proposed changes in the law have been designed to align with the emerging order of global trade, attract investment and boost local manufacturing, a person aware of the matter said. One of the changes in the existing law aims to allow the sale of products manufactured in SEZs
Express Tribune
12-07-2025
- Business
- Express Tribune
PIA incurs net loss of Rs4.6 billion
Listen to article The finance ministry has disclosed in a report that Pakistan International Airlines (PIA) last year incurred a net loss of Rs4.6 billion and one-off accounting profit of Rs26 billion due to treating past losses as future assets "should not be misinterpreted as a sign of operational profitability". The biannual report on federal state-owned enterprises (SOEs) has again highlighted the inefficiencies of PIA, though it has been freed from legacy debt and liabilities. The Central Monitoring Unit (CMU) of the Ministry of Finance released the report on Friday, which gave an in-depth understanding of the accounts of PIA Corporation Limited (PIACL) after its restructuring in which Rs660 billion worth of debt was taken out of the company books. "Despite the overhaul, PIACL Core still reported a pre-tax loss of Rs4.6 billion for the full year and Rs2.3 billion over six months," said the Ministry of Finance. Three months ago, every high-up from Defence Minister Khawaja Asif to Prime Minister Shehbaz Sharif showed satisfaction with PIA's profit of Rs26 billion without knowing that it was a mere "accounting profit". The finance ministry's report stated that a one-off deferred tax asset (DTA) recognition of approximately Rs30 billion was booked as part of the restructuring. While this resulted in an "accounting profit", it is important to recognise that this is a non-cash adjustment, stated the ministry while correcting the record. The report stated "excluding the DTA, the airline's net loss before tax stands at Rs4.58 billion for 12 months," ending December. This DTA reflects the company's expectation of future taxable profits, which is itself a vote of confidence in the potential recovery path, but it should not be misinterpreted as a sign of operational profitability, said the ministry. "The CMU has, therefore, highlighted this so that future valuations consider these items". Accounting rules permit the DTA recognition where sufficient future taxable profits are probable, enabling to offset the accumulated tax losses. "The deferred tax asset of Rs30 billion represents a future tax shield and should not be considered part of core profitability," said CMU Director General Majid Soofi. But the CMU has plainly said that "the profit figures are essentially impacted by deferred tax reversals, impacting the effective tax rate and earnings quality". The report stated that a significant outcome of the restructuring was the dramatic reduction in long-term financing liabilities, from over Rs295 billion to just Rs13 billion, including lease obligations. Consequently, the finance cost plunged from Rs79 billion to Rs10 billion. The cost of services remains elevated and total operational costs reached Rs106.6 billion. "To mitigate these pressures, PIACL must aggressively pursue fleet modernisation, enter fuel hedging contracts and renegotiate existing supply agreements," the CMU recommended. It added that Rs8.3 billion in administrative cost and another Rs8.2 billion in distribution cost were high. PIACL also incurred exchange losses of Rs2.3 billion, reflecting unhedged exposure to foreign currencies that is a structural vulnerability for any international airline. The finance ministry said that following delisting from the Pakistan Stock Exchange and full government ownership of PIA via Holding Company, PIACL "is now free from short-term market pressures". But it said that a performance-based human resources model must be introduced, along with international productivity benchmarks and merit-based promotions. The ministry stated that PIA and Pakistan Telecommunication Company Limited (PTCL) also posed major risks. PIA's heavy debt despite debt being carved out increases insolvency risks, requiring urgent restructuring and potential strategic partnerships. "Rapid privatisation should be ensured," it said. After the failure of the first attempt, for the second attempt to privatise PIA, the Privatisation Commission has pre-qualified four parties and three of them are cement makers. The finance ministry said that PIA and PTCL face market pressures and operational inefficiencies. Debt restructuring, operational improvements and reduced leverage through asset sales are key measures to regain financial health and reduce their dependence on the government, it recommended. PIA is among the entities that face undue interference. It has also been placed among the entities that have low compliance with the SOEs Act, falling even below 60% threshold. To address these challenges, strategic mandates of SOEs must be clearly recalibrated and aligned with national economic goals and fiscal discipline. Long-term business plans that incorporate measurable stakeholder-aligned objectives must be institutionalised, particularly for high loss-making entities like power distribution companies, Railways, and PIA, stated the report. It added that the restructuring of PIACL marks a turning point in the airline's decades-long struggle with debt and inefficiency. Through the successful implementation of the Scheme of Arrangement (SOA), the airline has shed legacy debt and non-core assets, emerging as a streamlined, aviation-focused entity. This strategic realignment allows the company to shift from financial firefighting to operational revitalisation. The government has parked Rs660 billion worth of PIA debt in a new holding company along with non-core real estate assets, which substantially cleaned up the balance sheet. With this separation, PIACL now operates as a focused airline business, while PIA Holding Company takes on the responsibility of settling historical obligations through budgetary support and asset monetisation. This structure enables clearer financial reporting and makes future privatisation or partnerships more feasible. Post-restructuring, PIACL's total assets are recorded at Rs187 billion after accounting adjustments. The company's current liabilities have declined from Rs482 billion to Rs142 billion and non-current liabilities from Rs366 billion to Rs41 billion. These carve-outs have eliminated the suffocating debt overhang and improved solvency metrics, offering much-needed breathing space for strategic decision-making, according to the report.
News18
12-07-2025
- News18
DRI Seizes Chinese Firecrackers Worth Rs 35 Crore In Major Crackdown, 1 Arrested
Last Updated: DRI Mumbai seized Chinese firecrackers worth Rs 35 crore in 'Operation Fire Trail.' The illegal imports were intercepted at Nhava Sheva, Mundra, and Kandla SEZ. In a massive crackdown against illegal imports, the Directorate of Revenue Intelligence (DRI), Mumbai Zonal Unit, has seized Chinese firecrackers worth approximately Rs 35 crore. The recovery was made as a part of the operation codenamed 'Operation Fire Trail'. The crackdown led to the interception of seven containers of these crackers at Nhava Sheva Port, Mundra Port, and Kandla SEZ. The firecrackers, weighing around 100 metric tonnes, were illicitly imported under false declarations, disguised as goods like 'Mini Decorative Plants," 'Artificial Flowers," and 'Plastic Mats." The imports were routed through a KASEZ (Kandla Special Economic Zone) unit and several IEC (Importer Exporter Code) holders, with an intent to divert the consignments into the Domestic Tariff Area (DTA). A key individual, a partner in the SEZ unit, was identified as the mastermind behind the operation and has been arrested. He has been remanded to judicial custody by the court. Under India's Foreign Trade Policy, firecracker imports are classified as 'Restricted' and require license from the Directorate General of Foreign Trade (DGFT) and Petroleum and Explosives Safety Organization (PESO), as per Explosive Rules 2008. Firecrackers and fireworks contain banned and hazardous chemicals like red lead, copper oxide, and lithium. Due to their explosive nature, such consignments pose a major threat to public safety, port infrastructure, and the broader logistics network. This carefully coordinated operation reflects DRI's strong commitment to curbing smuggling activities and protecting national security. By intercepting these dangerous goods, the agency has averted risks of accidental explosions and serious disruptions to the supply chain. The DRI continues to strengthen its vigilance to dismantle illicit smuggling rackets that undermine Exim trade ecosystem. view comments First Published: July 12, 2025, 10:14 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
