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Economy & Business

Cess on central taxes likely to fund primary education

What is India News Service, June 28, 2004, 1830 hrs

The UPA government plans to introduce a new cess on all central taxes to fund primary education. The BPO industry is working hard to tackle high attrition rates, especially in call centres. Indian financial planners are considering patenting of planning strategies. The exercise to revamp Alliance Air fleet poses a threat to many employees.

The Manmohan Singh government is likely to introduce a cess to encourage education. Overall, the central government gets an estimated Rs 2,50,000 crore in gross annual tax revenues. A cess of 2 per cent would take the additional tax revenue to around Rs 5,000 crore. The NDA government had estimated a yearly requirement of Rs 9,300 crore for elementary education programmes. Unless the cess is in addition to other education funds, the amount generated by the cess alone may not be sufficient.

The BPO industry is frantically looking at curbing its high attrition rate. Its biggest worry is that the recruits take call centre jobs as \91stop gap\92 employment which gives them time to find better paying jobs. One way the industry feels these issues can be sorted out is by starting specific courses, such as BBA and MBA at ITES/BPOs.

While financial planners in the US are patenting their tax, insurance and estate planning strategies, Indian financial planners want to follow in their footsteps. While patent law in India doesn\92t consider financial planning strategies as innovations, experts say that business-method patents should be encouraged.

The civil aviation minister plans to replace Alliance Air\92s existing fleet of Boeing aircraft with Airbus A319s. This could force 89 engineering employees out of their jobs on the feeder line. Airlines employees say that this is in direct conflict with the Congress-led government\92s promise to protect workers\92 interests.

 Overall:

Education cess on the way: The UPA government plans a cess on all central taxes to fund an ambitious primary education scheme.

BPOs worried over high attrition rate: Call centres are desperately working to reduce their 40 per cent attrition.

Indian financial strategies looked at patents: Tax, insurance and estate planning strategies are patented in the US, and Indian financial planners also want to follow suit.

Airline jobs are on the block: The revamping of Alliance Air\92s fleet could force engineering employees out of their jobs.

 

Yatra extension: Jammu and Kashmir governor Lt-Gen S K Sinha will discuss the Amartnath yatra programme with chief minister Mufti Mohammd Sayeed and deputy chief minister Mangat Ram Sharma on Sunday. The chief minister has said he will curtail the pilgrimage to one month, but pilgrims and senior Congress leaders want it to
be longer. The state administration is worried about terror threats to the Hindu pilgrims.

Four ministers belonging to the Congress yesterday resigned in protest against the Mufti\92s insistence on curtailing the pilgrimage.

Overall:

Sleuths swooped down: They raided government establishments all over the country and chargesheeted 30 officials.

India, Pakistan got ready for talks: This weekend is going to be crucial, with foreign secretaries of the two countries meeting in Delhi.

Bank offered more money: It saw more scope for funding, now that the Congress-led government has made commitments to the poor.

Karnataka talked of ordinance: The state is trying to rein in private college managements who don\92t want to share their seats with the government.