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India’s new tax regime hits Nepal exports

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Nepals exports to India has been adversely affected after the Indian government enforced the Goods and Services Tax (GST) this year, a media report said.

The GST is an indirect tax introduced in India on July 1 to make it one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

Export of major export items to India which were enjoying zero duty or nominal tariff earlier dropped significantly, according to a Nepal Rastra Bank report.

Export of juice, jute products, vegetables and fruits, processed food like biscuits and noodles and cardamom, among others, plunged heavily, the Himalayan Times reported.

Export of juice, which was a major export item to India in the previous years, plunged by 57 per cent in the first two months of current fiscal as compared to corresponding period of the previous fiscal year.

Nepal exported juice products worth Rs 344 million in first two months of the ongoing fiscal as compared to Rs 800 million in same period of previous fiscal, the report said.

Export of juice products to India was on the rise since last several years as the Indian multinational Dabur Nepal was the largest exporter of juice to India.

As per the central bank’s data, export of juice had surged by 50 per cent in the first two months of fiscal 2016-17 compared to the corresponding period of fiscal 2015-16.

The major reason behind the significant decline in export of juice was increased tariff to export to the Indian market.

According to exporters, they had to pay 12 per cent integrated goods and services tax (IGST) to export juice to India, compared to 6.18 per cent in the pre-GST regime.

They said the Indian market now has become 5.82 per cent costlier for juice exporters post GST implementation.

Likewise, export of large cardamom plunged by 45.3 per cent, fruits (85.9 per cent), vegetables (39 per cent), noodles (34 per cent) and jute goods (2.3 per cent) in the first two months of this fiscal as compared to the corresponding period of last fiscal.

There were high tariff differences in post- and pre-GST period in vegetables, processed food and other agriculture products, according to the bank report.

Shekhar Golchha, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry, said Nepali goods have become less competitive in Indian market as they have to pay high duty in post-GST period.

“Nepali exporters should diversify their market in short-term and be competitive in longer-term to tap the huge market opportunity in India,” he said.(IANS)

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Interesting facts you should know about Bitcoin, the cryptocurrency gold of 21st century

Bitcoin or Gold? The trends suggests bitcoin price is increasing multiple fold per day compared to slow price of gold surge in a year. Read more to know interesting facts about the most valuable cryptocurrency, Bitcoin

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Bitcoin Price, Cryptocurrency surge
Bitcoin, the gold of cryptocurrency (VOA)

If you would have invested in cryptocurrency Bitcoin worth 100 $ in 2010, you would be sitting at a total of Bitcoin price of 80000000 $ right now

  • Bitcoin market cap today is $172,565,842,974 USD, more than IBM and Walt Disney
  • The cryptocurrency market cap has breached $300 billion
Bitcoin: What is it, where can you use it? 

Bitcoin is a digital currency created in 2009 by a mysterious figure using the alias Satoshi Nakamoto. It can be used to buy or sell items from people and companies that accept bitcoin as payment, but it is not the traditional form of currency, Bitcoin is a cryptocurrency. Cryptocurrency, as the name suggests, are currencies generated by computer codes, thus it has no issuing agency (like Reserve Bank of India). Any cryptocurrency is generated by ‘miners’ on a cryptocurrency network like bitcoin that solves complex mathematical problems. The network is peer to peer and transactions take place between users directly through the use of cryptography, without an intermediary.

“The system can act as a payment network that has no down time, it’s operating 24/7, it doesn’t care where and to whom you send money,” says Michael Rauchs, a cryptocurrency and blockchain expert at the Judge Business School at the University of Cambridge.

Bitcoin price, Bitcoin investment
Cryptocurrency Bitcoin, the growing market (VOA)

Why is bitcoin’s price surging insanely?

Like any other assets or currencies, bitcoin price is determined by the amount that people are willing to pay for it. The bitcoin price, surged above $10,000 on Wednesday for the first time, breaking a symbolic threshold in what has been a vertiginous ascent this year. The increasing demand pressure from investors and speculators makes the case for an even further increase in bitcoin prices in the near future. Bitcoin is decentralized and limited which makes it rare. This is a major factor for many Bitcoin users. Bitcoin is hard for government to trace and tax. The Bitcoin price surged insanely after demonetisation in India. Also, unlike fiat money produced by central banks, there is a cap set on total Bitcoin, limiting how much the currency can devalue through inflation.

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On 22nd May 2010, Laszlo Hanyec bought a pizza for 10,000 bitcoins. The Bitcoin pizza is worth $105,830,950 today.

Will Bitcoin ever be a safe investment or always a gamble?

Despite RBI warning, 2,500 Indians investing in cryptocurrency Bitcoin daily. The lack of clarity about its origin is another big issue related to bitcoin. Investment in cryptocurrency is always a subject to risk, you should invest only what you are comfortable to lose. While some investors may be attracted by the massive rises this year, others will be wary of the volatility. In mid-January one bitcoin price was valued at $800. By June Bitcoin price had gone to $3,000. At the end of November it touched $10,000. If you are an experienced investor with a balanced portfolio and relatively small exposure, then BTC is an exciting and potentially lucrative investment. But there is potential for significant losses and investors need to carefully consider the method of investing.

“The general sensible view is that the more volatile the investment, the smaller proportion of your wealth you should consider storing in it,” says Marc Warne, founder of bitcoin exchange Bittylicious. I have heard of people moving their life investments into bitcoin and this is a bad idea.

Bitcoin’s current value and price is based on the belief that it will continue to grow as the main cryptocurrency in the world, but it only accounts for just over half of the crypto market capitalization, new currencies are being developed, launched and spent everyday. The competitor coin Ethereum, for example, launched in September 2015 and is now worth $440 per coin.

If you can stomach volatile kind of risk, you can handle trading in this market. After all Bitcoin Pizza is worth $105,830,950 today.

 

– by SHAURYA RITWIK, Shaurya is Sub-Editor at NewsGram and writes on Geo-politcs, Culture, Indology and Business. Twitter Handle – @shauryaritwik