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- Bit by Bit 18th Jan || Central government intends to alter the income tax rate || ITC to buy 'Yoga Bar' to strengthen presence in health foods space & More
Bit by Bit 18th Jan || Central government intends to alter the income tax rate || ITC to buy 'Yoga Bar' to strengthen presence in health foods space & More
Good Afternoon Readers!
Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
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(Market Data as of 11:00 PM on 16/01/2022)
ECONOMY
The Story:
The Centre is considering lowering rates under its voluntary income tax framework and could introduce revised slabs according to a report by Reuters on Tuesday. This move comes just ahead of the union budget slated to release on 1st February. The final decision shall rest with the Prime minister’s office.
The current tax structure is as follows:
• 5% on income between 2.5L and 5L
• 10% on income between 5L and 7.5L
• 15% on income between 7,5L and 10L
• 25% on income between 12.5 and 15L
• and 30% on income above 15L
People are allowed to choose which tax slab they want to be taxed under in the current system. Although the new optional income tax scheme offers lower headline taxation rates on annual income, it is unappealing to many as it doesn’t allow exemptions on house rent and insurance among other things.
The threshold for 30% tax should be raised to Rs 20L under the concessional income tax regime in Budget 2023–24 to make it appealing to middle-income taxpayers, experts say. Investments in PPF and other tax savings schemes should also be allowed as deductions, they added.
"Allowing exemptions and tax deductions in the new income tax regime would make it complex and this wasn't the intention while introducing the scheme," one of the government sources told Reuters.
FMCG
The Story:
Diversified conglomerate, ITC, said on Tuesday, it would acquire 100 per cent of Sproutlife Foods Private Limited, makers of Yoga Bar healthy foods. A further infusion of Rs 80 crore would be made through primary subscription, in one or more tranches, by March 31, 2025 or later.
The Yoga Bar acquisition, ITC said, would fortify its presence in the Rs 45,000 crore fast growing, nutrition-led healthy foods space. Its product portfolio comprises nutrition bars, muesli, oats and cereals. Positioned as a digital first brand, Yoga Bar has a high salience of online sales (D2C, e-commerce platforms), with a growing presence in offline stores. According to a ITC statement, Yoga Bar has established itself as a leader in the bars segment and has built a strong market position in the muesli segment.
The acquisition would also enable ITC to augment portfolio in the ‘good for you’ space, which currently includes Aashirvaad multigrain atta, Aashirvaad Nature’s Super Foods, Farmlite range of biscuits, Sunfeast protein shake, B Natural Nutrilite ABC Beverage, among others. And leveraging ITC strengths in sales and distribution, sourcing, product development and digital, it is expected to be scaled up rapidly.
In another transaction, the now owner of Horlicks also said in December that it would acquire a 19.8 per cent stake in Nutritionalab which houses its products under the brand name Wellbeing Nutrition for Rs 70 crore.
AUTOMOTIVE
The Story:
The automobile sector, which was bogged down for months by the semiconductor shortage last year, is slowly coming out of the woods with easing supply-chain constraints. With vehicle sales topping 4.5 million in 2022, India became the world’s third-largest automotive market, beating Japan, Nikkei Asia reported earlier this month. However, even as automakers await the country to become a global giant in the sector, the country has still a long way to go, given its low levels of vehicle ownership. A growing preference towards premium cars and a robust growth in vehicle loans despite the hardening of interest rates shows the outlook is strong in that direction.
TECH
The Story
Hundreds of artifacts from Twitter's San Francisco headquarters are available for online bidding. With little under 24 hours left in the auction, a statue of the platform's recognizable bird emblem is listed for sale for $11,000 (£8,900). An @-shaped planter measuring 190 cm (6 feet) tall is currently selling for $4,300. The transaction occurs as Twitter's new owner, Elon Musk, trims down the firm after buying it for $44 billion last year. The firm employs 7,500 people, and since taking control in late October, Mr. Musk has let around half of them go. Additionally, he has eliminated a lot of Twitter's benefits, such as free dinners. A sparkling drink fountain with an ice dispenser and numerous high-end La Marzocco espresso machines are among of the kitchen gadgets for sale. In November, Mr. Musk tweeted that the firm had seen a "huge decrease in revenue" as a result of the loss of many sponsors. He also expressed concern that the company would fail. In offices all across the world, including its headquarters in San Francisco, where their landlord is suing for non-payment, Twitter is said to have missed rent payments.
Anything Interesting
Mario Seplveda, who had spent 37 days underground and was starving and on the verge of going insane, thought he had to battle the devil. In order to accomplish this, he entered level 44 of the San Jose mine, a hotter and muckier portion of the hell in which he and 32 other Chilean miners were imprisoned. Seplveda had more than 750 metres of granite between him and the burnt landscape of the Atacama Desert when he started fighting his demons. It would be another month before any of them could breathe free air once more. However, when he returned to his friends, victorious — or at least not defeated — he felt rejuvenated.
The Atacama Desert's searing wind finally seemed magical to the 33 miners who perished in the 2010 Copiapó mining tragedy, but as I stand in its northernmost regions, I find it scary. Micaela Daz steps out of the Landcruiser in the middle of what appears to be nowhere and announces, "We're here. The doors are quickly squeezed against our shins as a warm gust tries to force us back inside the car. Our boots crunch on salt-baked sand when we eventually manage to go.
