Taxes make up 70% of the retail fuel prices, Drop in equity MF inflow
Coronavirus cases globally have reached 3,916,245. We are almost near the 4 million figure.
While in India the numbers are over 56K cases. Director of AIIMS Delhi states that the coronavirus cases in India would peak in June-July this year.
Taxes in fuel account to 70% of the retail price –
After the excise duty hike on fuel taxes account to 70% in the price of retail fuel. This is despite of the fall in the price of international crude oil globally. GOI wants to make up for the revenue which was lost due to the lockdown. For every rupee hike in excise price government makes up Rs 13,000 to 14,000 crore. OMC’s earlier used to make between Rs 14.5 to Rs 16.5 per liter of fuel now they make about Rs 2.3 to Rs 4.4 for per liter of fuel. As the excise duty has been levied on OMC’s. This has lead to broking houses downgrade the price targets of these OMC’s.
A Bloomberg article reported yesterday that India looks to lure over 1000 American companies out of China. This will help enable improvement in existing infra, supply chains, and also provide employment to a lot of people. A lot of global companies have realized the importance of diversification by just not relying on China or for that matter one particular country for their production needs.
Inflow into equity MF –
Investors pumped Rs 81,600 crores in equity mutual funds schemes in FY 19-20. This is a decline of 27% from the previous year which stood at Rs 1.12 lakh crores in inflow. A lot of people stop their SIP’s when the markets come down. Which is generally not recommended. The main purpose of SIP is averaging and that needs to be taken into consideration.
Alcohol is in the news for a lot of reasons. The main one being revenue to the government. Last year all the states in India combined earned Rs 2.5 lakh crores in tax revenue by Liquor sale. (source)
Delhi government has started to issue tokens online. So if you wana buy booze, you gota take token online first on qtoken.in.
Zomato wants to deliver booze in areas that are relatively less impacted byCOVID-19. They have given a proposal to ISWAI.