Daily Archives: July 19, 2022

I am pleased to share with readers a post that Christine Tang and I wrote for Globalsource Partners (globalsourcepartners.com) subscribers on the Philippines fiscal outlook. We are their Philippine Advisers.

Last Friday, the Development Budget Coordination Committee (DBCC), an inter-agency body made up of the departments of budget, finance, planning and the BSP (Bangko Sentral ng Pilipinas), presented the new administrations fiscal program for 2022 to 2028. The medium-term program hinges on the economy sustaining its growth clip at 6.5% to 8% starting 2023 and inflation returning to the BSPs 2% to 4% target starting 2024.

Given nominal GDP growth of 9% to 10%, the fiscal program aims to reduce the overall national government (NG) budget deficit, which reached 8.6% of GDP last year, by 1 ppt every year until it falls to 3% of GDP, the pre-pandemic deficit target. With this performance, it expects the NG debt ratio, which is anticipated to creep up to 61.8% of GDP this year, to gradually drop to 52.5% of GDP by the end of the administration.

The reduction in the deficit and debt ratios to GDP will be done through a combination of raising revenues and cutting expenditures relative to GDP. The revenue effort is programmed to rise from 15.5% last year to 17.6% by 2028 or an increase of 2.1 ppt, while spending as a share of GDP is programmed to fall from 24.1% last year to 20.6% in 2028, equivalent to a decrease of 3.5 ppt. Despite the reduction in expenditures, government intends to keep infrastructure spending at 5% to 6% of GDP.

OUR VIEWAs far as the numerical targets are concerned, the latest medium-term fiscal program is basically an extension of the last one, crucial mainly in terms of signaling to markets that the new administration is committed to pursuing fiscal consolidation. The 2028 target for the debt ratio, i.e., 52.5% of GDP, is certainly more realistic and supportive of post-pandemic recovery needs, than a promise of quickly paring it to the pre-pandemic ratio of 39.6%.

We are looking forward to the nuts and bolts of the fiscal program, particularly:

1. New economic growth drivers that will keep the medium-term GDP growth rate at 6.5% to 8%, an ambitious target for the post-pandemic period especially with the lingering effects of the pandemic, the many external headwinds (end of cheap credit, elevated commodity prices, slowing global economic growth) and governments more limited macro policy space (both fiscal and monetary) to support domestic consumption and investments.

We note that the 6% growth target for goods exports is itself unaspiring, especially in light of the new laws liberalizing foreign investments.

2. Sources of new revenues that will keep revenue growth above nominal GDP growth from 2023 onwards. The Finance secretary said recently that the economic team will pursue the remaining tax packages of the Duterte administration, dealing with property valuation and financial sector taxation which, while revenue neutral, will make the tax system more efficient. He is also in favor of imposing taxes on digital transactions but did not specify expected revenue inflows.

3. Expenditure reforms that will create space for continuing social protection programs, especially in health and education, and maintaining infrastructure spending at 5-6% of GDP, even as government pared its overall spending as a share of GDP. The budget for military pension liabilities alone is expected to take up about 1% of GDP annually during the term of this administration.

We await the Presidents State of the Nation Address later this month where he is expected to present his administrations economic program.

End.

POSTSCRIPT:Although we expect GDP growth this year to reach 6.8% (driven by base effects and election spending), we think the governments 6.5% to 8% growth target through 2028 is rather ambitious.

My own gut feel is medium-term growth potential is now much lower, closer to 4-5%, the long-term Philippine growth rate rather than the 6-7% of the past decade pre-pandemic. As mentioned in our post, this is because of the drag from scarring from the pandemic (closed businesses, education, and labor mismatches) and considering the end of decade long credit cycle (cheap credit), elevated inflation everywhere affecting consumption and investments, global economic slowdown, even risk of recession, and governments more restricted fiscal space.

But I would like this government to prove me wrong. The way I think it can do this is if it can quickly earn investors trust to attract more FDIs, especially job creating ones, and revive PPP (public-private partnerships) as a way of sustaining infrastructure investments, including digital ones. Moving us towards more investment rather than consumption driven growth.

On PPP, there are immediate to dos:

1) Signal respect for sanctity of contracts and the rule of law by complying soonest with the terms of the MWSS concession agreements and the international arbitration ruling. (See the column of National Scientist and UP Economics Professor Raul Fabella https://bit.ly/Fabella060622).

2) Scrap the midnight revisions on IRR (implementing rules and regulations) on build-operate-transfer (BOT) projects and PPPs. The flawed revisions include overly restrictive MAGA coverage (material adverse government action), and removal of provisions on parametric formula for rate setting, and on international dispute settlement. (Please see the Op Ed that summarizes the specific concerns of the Foundation for Economic Freedom and the Makati Business Club https://bit.ly/BOT_amendments ).

Romeo L. Bernardo was finance undersecretary from 1990-96. He is a trustee/director of the Foundation for Economic Freedom, Management Association of the Philippines, and FINEX Foundation. He is Philippines principal adviser to Globalsource Partners

globalsourcepartners.com

romeo.lopez.bernardo@gmail.com

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A first look at the medium-term fiscal program - BusinessWorld Online

BlackRock, JP Morgan Chase, others respond to boycott notices from West Virginia State Treasurer

Six financial institutions that West Virginia Treasurer Riley Moore contacted over their alleged boycotting of the fossil fuel industry have replied, denying the accusations while laying the groundwork for what could be a protracted legal battle.

The Epoch Times obtained the letters through a West Virginia Freedom of Information Act request.

Moore sent letters to BlackRock, JP Morgan Chase, U.S. Bancorp, Wells Fargo, Goldman Sachs, and Morgan Stanley on June 10.

That was in line with a new West Virginia law that limits the states ability to do business with financial institutions believed to be boycotting energy companies with ties to coal, oil, or natural gas production.

The companies had to respond to the letters within 30 days of receiving them to avoid being placed on a list of restricted financial institutions, which would have been published 45 days after Moores office sent them.

The West Virginia State Treasurers Office still intends to publish a list of restricted financial institutions.

Coal, natural gas, and oil are important sources of revenue for the Appalachian state, including through what are known as severance taxes.

In Fiscal Year 2022, the state collected almost $800 million in such taxes, well above the nearly $300 million collected during the previous fiscal year.

In addition to providing direct tax revenue, the fossil fuel industry is a significant driver of the states overall prosperity.

A West Virginia University research report found that coal power and coal mining were collectively responsible for roughly $13.9 billion in economic activity in West Virginia during 2019.

Unsurprisingly, one of the few national-level Democrats who defends fossil fuels is West Virginia Senator Joe Manchin.

On July 14, Manchin made it apparent he would not back President Joe Bidens efforts to finance additional climate and energy programs.

The move prompted one University of California, Santa Barbara political science professor to write on Twitter that she was holding [her] children and sobbing.

Rep. Ilhan Omar (D-Minn.), Sen. Martin Heinrich (D-N.M.), and other Democrats have since taken aim at Manchins chairmanship of the Senate Energy and Natural Resources Committee.

Treasurer Moore, a Republican, thinks Democratic rhetoric and policies targeting the fossil fuel industry have helped shift voters in West Virginia, a state long dominated by Democrats, toward the GOP.

We have union members voting for us in large numbers now, which was not the case previously, Moore told The Epoch Times during a July 18 interview

The banks and financial institutions that received letters have argued that their various policies on fossil fuel financing do not qualify as boycotts, claiming that they are covered by the reasonable business purpose exemption in West Virginias new law.

The Companys reasonable business purpose for any determination not to proceed with a transaction includes assessment of both commercial viability and risk management for the Company and its clients, Goldman Sachs letter stated.

It then added that it tells firms in the energy sector a diversification strategy tends to make companies much more successful in obtaining financing.

That is the basis for the note in the Companys Environmental Policy Framework, available on its public website, about the phasing out, over time, of financing of thermal coal mining companies that do not have a diversification strategy within a reasonable timeframe.

Goldman Sachs letter also stated that it does not back energy firms if their financing supports new thermal coal mines, mountaintop removal mining, new coal plants that lack carbon capture or equivalent technologies, and new upstream oil drilling in the Arctic.

Similarly, Wells Fargo asserted that its limitations on the financing of coal, its additional levels of due diligence to companies in the oil and gas and mining industries, and its unwillingness to fund oil drilling in the Arctic reflect a reasonable business purposenamely, risk management.

Morgan Stanley explicitly argued that its risk management strategy encompasses the risks of climate change to our reputation and client relations.

In itsown Environmental and Social Policy Statement, it pledges not to finance new coal plants without carbon capture or similar technologies and not to finance new thermal coal mining.

By 2030, we will phase out our remaining credit exposure to companies with greater than 20% of revenue from thermal coal mining globally, it additionally states.

JP Morgan Chase made a very similar argument in its letter to the West Virginia State Treasurers Office.

Like Wells Fargo and other firms that responded to Moores letters, they said they already provide significant financing to the energy industry, countering the argument that they are boycotting it.

Yet, the language in West Virginias law refers not merely to full de-banking, but more broadly to any action intended to penalize, inflict economic harm on, or limit commercial relations with a company involved in fossil fuels or doing business with a fossil fuel company.

This includes actions on some firm because it does not commit or pledge to meet environmental standards beyond applicable federal and state law.

Wells Fargo, for its part, pointed out that it recommended against a resolution at its 2022 shareholder meeting that would have seen it adopt a boycott-like policy prohibiting lending to or underwriting new fossil fuel development. That resolution failed to pass.

William J. Carney, Charles Howard Candler Professor of Law Emeritus at Emory Law School, did not find the financial institutions arguments convincing.

In a July 15 email interview with The Epoch Times, he noted that some of the banks and financial institutions claim environmental risks, which involves either the risk of government regulations or a risk of reduced demand for their products.

Rising oil prices put the lie to the price risk, as does President Bidens trip to Saudi Arabia to beg for more output, he said.

Government regulation is dependent on politics, which currently suggests a consumer revolt against anti-energy policies, he added.

Carney strongly disagrees with the overall push for debanking oil, coal, and natural gas companies.

Obviously it is suicide for local banks to boycott fossil fuel companies in West Virginia.The entire anti-carbon fuel movement is predicated on a false assumption: that global warming is caused by the use of fossil fuels, he said.

[Boards] that act on this assumption have not engaged in a reasonable inquiry, and thus should not be protected by the Business Judgment Rule.

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Financial Giants Reject West Virginia's Claims That They're Boycotting Fossil Fuels - The Epoch Times

Residents of five Waldo County towns will be asked to vote in July and August on a proposal to create a fiber broadband connection for every home.

Frustrated by slow and expensive internet service, residents of each of the towns formed a committee that has worked for over two years to develop a better approach with the goal of providing equitable access to a fiber-optic broadband network with fast upload speeds, providing a minimum of 100 HMbit/sec symmetric service.

Resident responses to surveys indicated a need for faster internet for education, telehealth, employment, business and entertainment. The Southwestern Broadband Coalition board of directors reviewed an analysis of currently underserved areas and completed a feasibility study of providing fast fiber-optic access to every home in Freedom, Palermo, Montville, Liberty and Searsmont.

After extensive research, the SWCBC board determined that the most economical and efficient solution was to create a municipal utility, owned by the towns, that would provide open access to internet services and operate at no cost to taxpayers.

The towns now seek input from residents on the proposal. Other underserved town groups, like Downeast Broadband, have done this with great success, providing much lower-cost internet and telephone service as a choice for (residents), according to a press release July 18 from SWCBC.

By providing a range of choices for internet service, residents will not be limited to just one internet provider and, instead of being dictated by one or few providers that offer low-speed and spotty service in most of the towns, residents could select what internet service best meets their needs and budget.

Informational sessions are being offered in each town to provide residents with results of the SWCBC research and fiscal plans for the proposed Interlocal Agreement. A second meeting will then be held in each town to vote on the proposed nonprofit municipal utility, according to the press release.

If approved as a nonprofit municipal utility, owned by the five towns, the utility district will engage with an Internet Service Provider to run fiber-optic lines to every home, business and public building in the towns.

A copy of the Waldo Broadband Coalition Interlocal Agreement document is available in each town office. A positive vote will be a step forward to getting a choice of services among providers, the press release said. Children will have a better education using the internet, the rest of us will be able to work from home and access telehealth services, the release said.

More information is available at swwaldobroadband.org.

Following is the schedule of public informational meetings and voting by town:

Searsmont: Meet Wednesday, July 20, 7 p.m.; vote Wednesday, July 27, 7 p.m. at Searsmont Community Room.

Freedom: Meet Thursday, July 21, 6 p.m.; vote Thursday, July 28, 6 p.m. at Freedom Town Office Annex.

Palermo: Meet Tuesday, July 19, 6 p.m.; vote Thursday, July 21, 6 p.m. at Palermo Library.

Liberty: Meet Wednesday, July 20, 6:30 p.m.; vote Thursday, July 28, 6:30 p.m. at Liberty Community Hall.

Montville: Meet Tuesday, Aug. 2, 6:30 p.m., or Wednesday, Aug. 17, 6:30 p.m.; vote Tuesday, Aug. 23, 6:30 p.m. at Montville Town House.

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Five Waldo County towns ready to vote on broadband - Republican Journal

New Delhi [India], July 18 (ANI): Defence Minister Rajnath Singh on Monday said that the Indian Navy spent over 64 per cent of its capital budget in domestic procurement in the last financial year and it is expected to increase to 70 per cent in the current financial year.

Addressing the Naval Innovation and Indigenisation Organisation (NIIO) seminar Swavlamban here, Singh laid thrust on innovation, indigenisation and partnerships between the Armed Forces, Industry, research establishments and academia.

He commended the Prime Minister Narendra Modis vision of Aatmanirbhar Bharat, likening it with the Swadeshi movement of Father of Mahatma Gandhi.

Asserting that New India is making giant strides to achieve self-reliance with a new resolve, he exuded confidence that we will soon end the dependency on imports and touch newer heights.

He pointed out that at a time when the Nation is celebrating Azadi Ka Amrit Mahotsav, a new dimension of self-reliance has been added to the definition of freedom.

We have not only achieved self-sufficiency in foodgrains, but are one of its major exporter countries. Vaccines manufactured in India are saving lives of people all over the world. Our space craft is taking satellites of other countries into space. Today, India is not only self-reliant in many sectors, it is also fulfilling the needs of other countries, he said.

He stressed that self-reliance not only means overcoming economic constraints, but also to achieve decisional autonomy for the country by overcoming diplomatic constraints. The self-reliance efforts in the defence sector, under the guidance of the Prime Minister, have transformed Indias image and we will soon become a global manufacturing hub, he said.

Rajnath Singh appreciated the Indian Navy for playing a pioneer role in this endeavour by making remarkable progress in surface, sub-surface and air domains, setting up an in-house-ship-design-organisation and transforming itself from a Buyers Navy to a Builders Navy.

He described the ever-increasing indigenous content in warships as a testament to Indian Navys unwavering commitment towards Aatmanirbhar Bharat, saying that it is a matter of great pride for the nation that the shipyards and the industries are together developing the capacity and capability of the Armed Forces.

He said that in line with the Aatmanirbhar Bharat campaign, the Indian Navy spent over 64 per cent of its capital budget in domestic procurement in the last financial year and it is expected to increase to 70 per cent in the current financial year.

He said the role of the Indian Navy is going to increase further in the Indian Ocean Region and the Indo-Pacific in the times to come and expressed confidence that it is ready to deal with every situation and will prove its mettle in all circumstances, whenever needed. (ANI)

This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.

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Indian Navy expected to spend 70 pc of capital budget in domestic procurement this fiscal: Rajnath Singh - ThePrint

The Honorable Nancy PelosiSpeakerU.S. House of Representatives

The Honorable Kevin McCarthyMinority LeaderU.S. House of Representatives

The Honorable Rosa DeLauroChairwoman, Committee on AppropriationsU.S. House of Representatives

The Honorable Kay GrangerRanking Member, Committee on AppropriationsU.S. House of Representatives

July 15, 2022

Dear Speaker Pelosi, Minority Leader McCarthy, Chairwoman DeLauro, and Ranking Member Granger,

The undersigned civil society organizations write to express our grave concern regarding the amendments included in the Fiscal Year 2023 House spending bills for the Departments of Homeland Security and Health and Human Services that would legislatively codify and indefinitely prolong the use of the Title 42 policy, which has been used to block and expel asylum seekers and migrants seeking safe haven in the United States. We urge you to ensure that these poison pill riders, or others like them, are not included in any bill that receives a vote on the House floor.

In 1980, the U.S. Congress passed the Refugee Act, codifying in U.S. law the Refugee Convention protections drafted by the international community in the wake of World War IIs atrocities. Today, just forty years later, those vital protections are in grave risk. Title 42 prevents people who clearly qualify for asylum under our laws based on individual persecution in their homelands from even making their case. We urge the House of Representatives to reject the misguided political reaction of a few that would result in direct harm to asylum seekers and undermine the integrity of the U.S. asylum system.

Title 42 may sound innocuous; in reality it is a policy invented by the Trump administration to dismantle the U.S. asylum system, under the guise of specious public health justifications. Keeping Title 42 in place puts refugees at risk, exacerbates chaos at the border, and serves no legitimate public health goals.

The Title 42 expulsions policy harms asylum seekers. Expulsions have blocked people in need of protection from exercising their legal right to seek asylum without so much as a screening for asylum eligibility, as is required under U.S. law. Under Title 42, the U.S. government has routinely sent asylum seekers back to Mexico where they are vulnerable to kidnapping and violent assault, or back to the violence they fled in their countries of origin. Under the Biden administration, there have been over 10,318 reported violent attacks, including kidnapping and rape, against people expelled to Mexico under Title 42. The harms of the Title 42 expulsions fall primarily on Black, Brown and Indigenous asylum seekers. In recognition of the disparate racial impact inherent in the policy, civil rights leaders have called for the end of Title 42 in the name of racial equity and asylum law.

Title 42 does nothing to protect public health. The Title 42 policy was never justified as a public health measure. Senior CDC experts objected to the policy from its inception. Epidemiologists and medical experts have repeatedly confirmed that the Title 42 policy undermines public health responses to COVID-19 and that the pandemic, including emerging variants, can be addressed through existing precautions, such as offering vaccinations, testing, masking, and avoiding the use of congregate detention.

Title 42 sows chaos at the border rather than ameliorating it. Because Title 42 expulsions prevent people fleeing violence from seeking safety at U.S. ports of entry, the policy forces people to undertake repeated attempts to access asylum protections and U.S. immigration officials are actually prevented from enforcing U.S. immigration law. According to CBP data, the percentage of people who have attempted to repeatedly cross the southern border has jumped by over 385 percent from FY 2019 to FY 2022, from seven percent to 27 percent as of May 2022. Transnational organized crime also benefits from the Title 42 policy because without safe pathways to seek protection, migrants are often forced to rely on smugglers to get them to U.S. soil and are driven to dangerous pathways to seek protection.

The amendments passed out of the House Appropriations Committee are particularly harmful because they make Title 42s rescission contingent on termination of the COVID-19 emergency declaration, a decision with widespread public health and safety ramifications. The decision to end the COVID-19 public health emergency declaration is an incredibly consequential one, as the termination will limit or end the governments flexibility to respond to COVID-19 related public health needs, including the issuance of waivers or modifications of Medicare, Medicaid and CHIP requirements. The Kaiser Family Foundation estimates that between 5.3 and 14.2 million people could lose Medicaid coverage when the public health emergency is terminated. Tying asylum access to the public health needs of millions will inject an irrelevant complication into this important decision, with unintended and potentially harmful consequences for both immigration and public health.

We urge you to ensure that these amendments are not included in any legislation that receives a vote on the House floor. Permitting these bills to proceed would irreparably taint decades of congressional commitment to protect refugees and asylum seekers. With countless lives at stake, we expect you to protect, not undermine, the rights of asylum seekers.

Sincerely,

National Organizations:African Communities TogetherAlianza AmericasAmericas VoiceAmerican Civil Liberties UnionAmerican Friends Service CommitteeAmerican Immigration CouncilAmerican Immigration LawyersAssociation American-Arab Anti-Discrimination Committee (ADC)Amnesty International USAAsian Americans Advancing Justice | AAJCAsian Pacific Institute on Gender-Based ViolenceAsylum Seeker Advocacy Project (ASAP)Autistic Self Advocacy NetworkBend the Arc: Jewish ActionBlack Alliance for Just Immigration (BAJI)Bread for the WorldBridges Faith InitiativeCenter for Constitutional RightsCenter for Disability RightsCenter for Gender & Refugee StudiesCenter for Law and Social Policy (CLASP)Center for Victims of TortureChildrens HealthWatchChurch World ServiceCivil Rights Education and Enforcement CenterCoalition on Human NeedsCommunities United for Status & Protection (CUSP)Community Change ActionComunidad Maya Pixan IximDetention Watch NetworkDisciples Immigration Legal CounselDisciples Refugee & Immigration MinistriesDoctors for Camp ClosureEvangelical Lutheran Church in AmericaFaith In Action (LA RED)Familia: Trans Queer Liberation MovementFamilies for FreedomFamily VoicesFIRM ActionFirst Focus Campaign for ChildrenFreedom for Immigrants (FFI)Freedom Network USAGovernment Accountability ProjectHaitian Bridge AllianceHIASHispanic FederationHuman Rights FirstHuman Rights WatchImmigrant Justice CorpsImmigrant Legal Resource CenterImmigration Equality Action FundInnovation Law LabInstitute for Justice & Democracy in HaitiInternational Mayan LeagueInternational Refugee Assistance Project (IRAP)International Rescue CommitteeInterReligious Task Force on Central America and ColombiaJesuit Refugee Service/USAJPIC Office, Adorers of the Blood of Christ, US RegionJustice Action CenterJustice in MotionKids in Need of DefenseKino Border InitiativeLatin America Working Group (LAWG)Leadership Conference on Civil & Human RightsLutheran Immigration and Refugee Service (LIRS)Maryknoll Office for Global ConcernsNAKASECNational Center for Lesbian RightsNational Center for Parent Leadership, Advocacy, and Community Empowerment (National PLACE)National Council of Jewish WomenNational Education AssociationNational Immigrant Justice CenterNational Immigration Law CenterNational Immigration Project (NIPNLG)National Justice For Our NeighborsNational Network for Immigrant and Refugee RightsNational Partnership for New AmericansNational Priorities Project at the Institute for Policy StudiesNETWORK Lobby for Catholic Social JusticeOxfam AmericaPhysicians for Human RightsPoder LatinxPresente.orgPrevention InstituteProject On Government OversightQuixote CenterRAICESRefugee CongressRefugee Council USARefugees InternationalRespond Crisis TranslationRobert F. Kennedy Human RightsSave the ChildrenService Employees International Union (SEIU)Showing Up for Racial JusticeSisters and Associates of St. FrancisSisters of Mercy of the Americas Justice TeamSojournersSouthern Border Communities CoalitionSouthern Poverty Law Center Action FundTruah: The Rabbinic Call for Human RightsTahirih Justice CenterU.S. Committee for Refugees and Immigrants (USCRI)UndocuBlack NetworkUnion for Reform JudaismUnitarian Universalist Service CommitteeUnitarian Universalists for Social JusticeUnited We DreamVera Institute of JusticeWashington Office on Latin America (WOLA)Witness at the BorderWomens Refugee CommissionYoung Center for Immigrant Childrens Rights

Regional / state / local organizations:Adelanto Visitation & Advocacy NetworkAdhikaarAdvocates for Basic Legal Equality, Inc.Advocating OpportunityAl Otro LadoAll Souls Unitarian ChurchAmerican GatewaysAsian American Advocacy FundAsian American FederationAsian Americans Advancing Justice-AtlantaAssociation for Special Children & FamiliesBellevue Program for Survivors of TortureBend the Arc Jewish Action PittsburghBend the Arc: Jewish Action MarylandBend the Arc: Jewish Action Champaign-UrbanaBorder KindnessBorder Organizing ProjectCapital Area Immigrants Rights Coalition (CAIR Coalition)Central American Resource Center CARECEN of CaliforniaChildren at RiskChurch Women United in New York StateCoalition for Humane Immigrant Rights (CHIRLA)Colorado Immigrant RightsCoalition Community Asylum Seekers ProjectConnecticut Shoreline IndivisibleEl Refugio MinistryEnvision Freedom FundEsperanza Immigrant Rights ProjectExceptional Childrens Assistance Center (ECAC)Federation for Children with Special NeedsFellowship SouthwestFirst Friends of New Jersey and New YorkFlorence Immigrant & Refugee Rights ProjectGeorgia Asylum and Immigration Network (GAIN)Georgia Human Rights ClinicGeorgia Latino Alliance for Human RightsGood ShepherdGrassroots LeadershipGuadalupe Presbyterian Church USA, Guadalupe, AZHawaii Families As AlliesHoly Spirit Social JusticeHope Border InstituteHuman Rights Initiative of North TexasIllinois Coalition for Immigrant and Refugee RightsImmigrant Defenders Law CenterImmigrant Legal Advocacy ProjectImmigration Working Group, SWPA Synod, Evangelical Lutheran Church in AmericaINCLUDEnycInter-Faith Committee on Latin AmericaInterfaith Community for Detained Immigrants ChicagoInterfaith Welcome Coalition San AntonioJewish Activists for Immigration Justice of Western MassJewish Family Service of San DiegoJewish Progressive Action (NH)Justice for Our Neighbors El PasoKitsap Immigrant Assistance Center (KIAC)La ConexionLa Raza Community Resource CenterLas Americas Immigrant Advocacy CenterLutheran Social ServicesMaryland Against ICE DetentionMaryland Legislative CoalitionMigrant Center for Human RightsMinnesota Freedom FundMontgomery County Federation of Families for Childrens Mental Health, Inc.New Sanctuary Movement of AtlantaNew York Immigration CoalitionNorCal ResistNorth Carolina Justice CenterNorthwest Immigrant Rights ProjectNW Ohio Immigrant Rights NetworkOasis Legal Services OPAWL Building AAPI Feminist LeadershipParents Place of MDPEAK Parent CenterRio Grande Borderland MinistriesRocky Mountain Immigrant Advocacy NetworkRutgers Law School, Child Advocacy ClinicSan Dieguito United Methodist Church, Encinitas, CASidewalk School Sisters of St. Francis of PhiladelphiaSisters of St. Francis, Tiffin, OHSisters of St. Joseph of CarondeletSocial Justice Coalition, Central Lutheran ChurchSPAN Parent Advocacy NetworkSt. James Cathedral, SeattleTakoma Park Mobilization Equal JusticeTexas Civil Rights ProjectThe Advocates for Human RightsTHRIVE CenterUniversidad PopularUniversity of San Francisco Immigration and Deportation Defense ClinicUnLocalWestchester Jewish Coalition for ImmigrationWind of the Spirit Immigrant Resource Center

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NGO letter opposing T.42 amendments in appropriations - Government Accountability Project

Starting next fiscal year, a 2 percent digital service tax will be charged on services provided over the internet to Nepali consumers by non-resident persons.

Electronic services such as gaming, video, music and app downloads, streaming services, cloud services and other services are taxable if the annual turnover exceeds Rs2 million.

"Digital service providers such as YouTube, Facebook, Twitter, Netflix and others will have to register in Nepal from July 17, the beginning of the new fiscal year 2022-23," said Raju Prasad Pyakurel, information officer at the Inland Revenue Department and director of the Taxpayer Service Section.

He refused to offer any details as to what step the government would take if such foreign e-businesses refuse to register.

The guidelines on Digital Service Tax issued by the Inland Revenue Department under the Ministry of Finance will come into effect from Sunday, July 17.

This move is intended to bring foreign service providers into the countrys tax net, said Pyakurel. We have been receiving informal queries from several service providers about the new law.

The 183-day rule is one of the criteria used to determine non-citizens for tax purposes, according to the Income Tax Act 2002.

This is the beginning, Pyakurel said. There are some provisions to fine those who fail to pay taxes on time. But this does not mean the government is trying to constrict social media usage. We want to bring non-citizens providing their services into the tax system.

The 59th annual report of the Office of the Auditor General unveiled on Wednesday states that Nepal has not been able to collect taxes from different apps that are providing digital services in Nepal from abroad since they are not identified and registered in the country.

Since they provide their services in Nepal, they need to be taxed under the countrys laws.

A huge amount of money goes out of the country for using various apps such as YouTube, TikTok, Google Meet, Zoom and Microsoft Teams, among others, according to the audit report.

In the absence of a legal gateway to pay the operators of such applications, payments are being made through Paytm, PayPal and credit cards by using the international electronic payment medium.

According to the new guidelines, digital services include advertisement service; films, television, music, over the top (OTT) and other media services based on membership; data archive service; cloud service; gaming service; mobile application related service; online marketplace and things and services provided through it; data and photo download service; education, consultancy, skill development and training service; and e-book, e-library and e-paper services, among others.

Digital services provided to Nepali consumers refers to those services provided inside Nepal, meaning the billing address is in Nepal; if payment is done through a Nepali bank account or through any tools operated by an institution authorised by law.

This also includes payments made through debit card, credit card or any other medium issued by a Nepali bank or any other institution authorised by law or if the service is being received by using an Internet Protocol Address located in Nepal and those services received by using a SIM card with a Nepal telecommunication code or landline.

A taxpayer who pays taxes as per the new guidelines will not have to pay taxes as per the Income Tax Act 2002.

The department has also implemented the working guidelines on value added tax applicable to digital services for non-resident persons.

According to the guidelines, a non-resident person providing digital services inside Nepal and having an annual transaction of more than Rs2 million is required to pay 13 percent VAT.

The digital service tax should be paid through an online medium within three months of the end of the fiscal year.

If the tax is not paid by the stipulated deadline, a 15 percent fine will be charged, according to the guidelines.

Industry insiders say the guidelines introduced to raise taxes should not regulate social media and curtail freedom of expression.

While it is important to bring digital services under the tax net, any such guidelines should not be used to limit social media platforms or undermine freedom of speech and expression, said Taranath Dahal, executive chairman of Freedom Forum, a civil liberty group that advocates free speech.

"There were doubts about the governments intention when it launched the Information Technology Bill three years ago," said Dahal. The government should remove all provisions that curtail freedom of expression in the Information Technology Bill and pass it as soon as possible.

The Information Technology Bill, which was passed by the parliamentary Development and Technology Committee in December 2019 and has remained idle in Parliament since then, has also provisioned social media companies operating in Nepal to be registered locally and pay taxes on the income they make from Nepali customers.

Last February, the Ministry of Communication and Information Technology prepared a directive which gave unlimited powers to the Department of Information Technology to control social media, its operators and users.

Most of the provisions in the draft were similar to those in the controversial Information Technology Bill.

The bill is still in Parliament. A rule was needed to bring foreign digital service providers under the tax system, said Prem Sharan Shrestha, director general at the Department of Information Technology.

While the immediate intention of the government in bringing the guidelines seems to be collecting taxes from foreign digital service providers, we still suspect its intention is to strictly regulate social media platforms, said Rastra Bimochan Timalsena, an advocate who also runs a YouTube channel named Random Nepali. "Nepal is not a big market for foreign digital service giants. However, the question is about the hassles they would potentially face to be registered in Nepal.

"And what if they dont agree to be registered? Will they be banned or allowed to continue their service? he questioned.

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Digital services provided by foreign firms to be taxed from tomorrow - The Kathmandu Post

Ayushman Cards issued by the government for the wellbeing of its citizens in the lower strata of society is a game changer in the health care system of the country. The eligible categories are schedule casts, schedule tribe households, beggars, hawkers and families with no male members and no individuals between age of 16 to 59 years. The health insurance scheme covers over 50 crores citizens in India and has several success stories to it. It is a smart digital governance move by the government but at the same time, it also seems to have few lacunas in it. This program known as the Pradhan Mantri Jan Aarogya Yojna is to make secondary and territory healthcare completely cash less for the underprivileged section of the society. The E- card can be used to avail services and facilities in empanelled hospitals (public and private) anywhere in the country. The coverage includes pre and post hospitalization expenses, operational expenses, etc up to Rs.5,00,000 p.a. per family per year.

Experts from the industry however hold a different opinion. Mumbai-based neurosurgeon Dr. Aadil S Chagla, said, Digital health ID Card is simply a ticket to access into health system and does not solve the real health issues. For instance, sex determination of an unborn child is not allowed to be disclosed in ultrasound clinics, in addition there still persists some stigma concerning certain health issues due to religious or family traditions. In such cases it becomes difficult for the patients more than the doctors. It is a lucrative opportunity to attack the privacy of individuals whose data would otherwise have been restricted to a few institutions in the normal course but now their personal data is available nationally as per the data management policy draft. Also, other sensitive information like bank account details and payment details will be stored in the database, making it easily prone to cyber-attack. Medically if we see its good for doctors but its a burden for laymen. Sharing sensitive information is not appreciated in many cases. There is an agenda behind every move. Its the IT that benefits from Aadhar Card linkage. Health sector needs to be attended at grass root level. Ex: certain patients come frustrated to me like the autoriksha driver having spine traumas due to poor road conditions who cannot afford to take a break for medical treatments as their livelihood gets affected? He is prone to overdose of medicinal intake which further deteriorates his condition like liver and kidney disorders. The government must make addition to the scheme to benefit such people so that their livelihood is not affected and they get proper treatment.

Talashi a Village in Radhanagari in Kolhapur District of Maharashtra, has no medical facilities for over 50kms. There are many such places where up to 100kms or more there is no medical facility. In case of chest pains, heart attacks, brain strokes, etc by the time the ambulance reaches, the patient may lose his life. Is it fair to get the digital world upgraded without making the foundations strong? The government should focus on addressing such pain points before focusing on digitalization. Todays buzz words are information and technology. Having said that, IT changes languages while upgrading but when it comes to health the basic foundations need to be strengthened.

Plastic and cosmetic Surgeon Dr. Suraj Singh Chauhan, says in times of fiscal crisis and shifting demographics, collaboration of public private hospitals will enable improved health infrastructure and would be a rewarding venture. However, patient privacy concerns need to be addressed. He suggests, using patients fingerprint logins for easy access to the Ayushman scheme as majority of the users are illiterate or semi-literate and at the time of need may not be even carrying their id card with them. This will enable for providing immediate medical attention especially in accident or emergency cases with access to the medical history of the patient. He said strong safeguards should be built in regarding the medical history and other data of the patient to be maintained independent of each other, to avoid misuse.

He also added The bureaucratic barriers to set up new hospitals must be reduced. At present, corporates are investing in establishing health care facilities, which is why they are running on business models with no freedom to doctors to play a significant role in administration. Doctors are blamed for performance when any crisis arises ignoring the fact that they are not well equipped to take any significant decision in administration or management, despite having the real knowledge as to what is required and what should be prioritised when it comes to real health care.

As per government, when approx. 86% of rural houses do not have access to any health care insurance, this health id card is a boon for them. Approx. 20% of rural families access health care by taking loans. This health id card will ease the burden on them and avoid debt traps.

Views expressed above are the author's own.

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Ayushman health ID card: A need for fine tuning! - Times of India