Gulf News 12th December, 2009
Only to be reminded that the solution is right there
In calamitous times of their lives, many clients come looking for more harmful solutions. They forget that the right remedy is not too far away.
K.V. Shamsudheen, director of Barjeel Geojit Securities, fondly recollects an incident with one of his clients back home in India. One day, the client, who was in his 50s, came to him asking to be put in touch with individual lenders. His business had failed and he was in dire financial straits. His daughter's wedding was not too far away, adding to his worries.
Shamsudheen, who has always been against individual lenders because they charge high interest rates, didn't know any such lender. Instead he reminded the client of his and his wife's investment they made years ago in shares of a well-known Indian media company and advised him to sell them. He had bought at a mere Rs100 per share and over the years, the price had shot up to Rs2,600. The client followed Shamsudheen's advice. In fact, he received much more than what he required financially. The client was able to meet all his obligations, including comfortably paying all the wedding expenses.
"No doubt, it's the most memorable story of my career," Shamsudheen says, with a tinge of emotion in his voice.
Tuesday, December 15, 2009
Friday, November 20, 2009
The Sharjah Quagmire
KHALEEJ TIMES
The Sharjah Quagmire
21 November 2009
I appreciate the Sharjah government for continuously working to control the traffic congestions in the emirate.
The main reason for the formation of congestion is lack of easy excess to the road leading to Dubai and entry to Sharjah. For example, to get entry to the south ring road, vehicles coming from the city have to take a zig-zag turn near Safeer Mall. Then the road narrows to one track leading to the first flyover.
Even though the ring road is wide, there is only one track to enter all the four roads leading to Dubai. The situation is the same for the traffic leading to Sharjah from Dubai. Though the roads are wide, it becomes single track near the flyover, and this leads to the piling up of vehicles.
The solutions are:
a) Route the Al Khan road directly to the ring road
b) Increase the number of tracks in the exit to Dubai from ring road and vice versa towards Sharjah.
I hope the authorities will consider these suggestions to ensure the smooth flow of traffic into and out of the beautiful city of Shrajah.
K V Shamsudheen,
Sharjah
The Sharjah Quagmire
21 November 2009
I appreciate the Sharjah government for continuously working to control the traffic congestions in the emirate.
The main reason for the formation of congestion is lack of easy excess to the road leading to Dubai and entry to Sharjah. For example, to get entry to the south ring road, vehicles coming from the city have to take a zig-zag turn near Safeer Mall. Then the road narrows to one track leading to the first flyover.
Even though the ring road is wide, there is only one track to enter all the four roads leading to Dubai. The situation is the same for the traffic leading to Sharjah from Dubai. Though the roads are wide, it becomes single track near the flyover, and this leads to the piling up of vehicles.
The solutions are:
a) Route the Al Khan road directly to the ring road
b) Increase the number of tracks in the exit to Dubai from ring road and vice versa towards Sharjah.
I hope the authorities will consider these suggestions to ensure the smooth flow of traffic into and out of the beautiful city of Shrajah.
K V Shamsudheen,
Sharjah
Saturday, November 7, 2009
REPRESENTATION FOR DIRECT TAX CODE
To
Shri: Dr. Pranab Mukharjee
Hon. Finance Minister
Ministry of Finance
North Block Ist floor, Parliament Street
NEW DELHI 1100001
Dear Sir:
Sub: REPRESENTATION FOR DIRECT TAX CODE:
Sir, first let me congratulate you for bringing Direct Tax Code draft in such a shortest time. But we NRI’s staying UAE feels that this Direct Tax Code Punishes NRI’s by laying higher taxes than the Resident Indians. Sir, as you are aware that in 1992 the then Hon. Finance Minister Dr. Manmohan Singh brought a scheme known as FOREIGN REMITTANCE SCHEME 1992 in this scheme App. 9mn US $ foreign currency came to India out of this App. US $ 6 mn came from middle east \ Gulf countries alone.
Sir, in UAE majority of expatriates from Kerala & other south Indians states and 95% of these expatriates are employed and staying mostly as bachelors, leaving their family & loved ones in India working here on odd whether conditions the only motto of these people is to earn money & send to their families in India. You will surprise that large number of Middle east NRI’s are holding lot of Bank Fixed deposits in Indian Nationalised banks like SBI’s etc.
Sir, since last 50 years (i.e. from inceptions of income Tax Act 1961) always NRI’s Treated special status and given lot of tax benefits because they are contributing foreign exchange reserves to Indian government. But this is the first time in last 50 years NRI’s are placed in maximum disadvantageous position by way of higher taxation as compare to the Resident Indians , therefore on behalf of these NRI’s I am drawing your kind attention to the following clauses of the Direct Tax Code Provisions:
1 Section 4 of IT Act amended & Resident but ordinarily (R& OR) status has been proposed to be removed. By which NRI’s foreign income for subsequent 2 years is will be taxable, sir as we are aware that generally NRI’s also keep some portions of their savings abroad to future contingencies like education of children’s or to meet medical expenses etc. by this amendment NRI’s are required to pay taxes on these foreign deposit from very second year of their returning to India. similarly now professional like visiting doctors , professors etc who are visiting to foreign country for their profession are also hit by this provision.
2 Capital Gain: Majority of NRI’s holding Indian company equity shares for long time, now this attracts 30%capital gain tax which is the biggest hardship to the NRI’s investors. Therefore we urge that as per old system long term capital gain on sale of shares may be continued.
3 It is more heartening to note that direct tax code proposes that there is no difference of tax between long term & short term capital gain & section 112 to 115 dealing specially NRI’s capital gain tax on investment is going to be deleted in the tax code.
4 Interest income on investment: under new code it will be taxed @ 20% for NRI’s where as resident Indian will pay tax only 10% up to income of Rs 10 lakhs , hence we pray that NRI’s interest income may be placed at par with Resident income i.e. upto Rs 10 lakhs the tax rates may be brought down to 10% for NRI’s also.
It is also said that other income like bank interest etc of NRI’s charged @30% if this is true kindly look this following example :
Mr. Shaji Non resident Indian staying in UAE and assume that he receives Rs 3 lakhs PA from SBI Cochin as interest on his fixed deposit. Now he is paying tax only of Rs 14,000 as under:
1ST 1,60,0000 NIL
Nest 1,40,000 10% 14,000
If new code comes he has to pay 30% tax on his Rs. 3 lakhs bank interest income and liable to pay tax of Rs.90,000 as against his present tax liability of Rs 14,000 only, kindly look into this issue. And we humbly pray that NRI’s may be given confessional tax benefit like Residents.
5 Some expert also says that since word used in the code for NRI’s Tax is as per Companies rate means No basic exemption of Rs 1.60 lakhs available & confessional rates of taxes like 20% for next 15 lakhs also not available, and 80 ( C ) deductions also not available which will effect very NRI’s badly.
6 Most of these NRI’s holding their one or two houses in India which will be used after their retirement. The new tax code proposes income of 6% retable value & where no retable value available 6% cost of construction or cost of acquisition. Suppose Mr. Shaji constructed house in his native place at Kerala say cost of Rs 1 cr & say no retable value certificate available & no rent received still as per new code his income from house property is Rs 6 lakhs PA (6% of 1 CR) & he is liable to pay tax (on Rs 6 lakhs @30%) 1,80,000 PA ?
Further if house is self occupied no deduction will be available for local taxes paid and interest paid on housing loan, now what happens lot of NRI’s acquired houses in India on the support housing loan from Indian banks & some hoses are still under construction what will be their fate if they are retiring where shortly and planning to spent their retired life in India. Are they liable such exhiborant tax ?
7 Sec 54 amended at present ,selling of one house & buying another residential house no capital gain tax will be payable subject to certain conditions, now it is propose to amend this section & capital gain benefit is available for only one residential house that means if a person wants to change one house to another first he require to sell old house than by new else capital gain tax will be payable on sale of old house. which again penalizes those NRIs who invested in 2 or 3 residential houses as per their future planning to distribute these houses among their children’s or brothers etc. 10 TDS: At present only NRI’s are liable to pay education cess @2% and higher education cess @1% on TDS amount. But from 1st October 2009 local Resident TDS this 3% cess is not applicable. No logic for keeping cess only NRI’s on TDS not understood , therefore we pray that NRI’s may be kept at par with local Residents for TDS purposes.
8 TDS for foreign sports person is only @ 10% than why for NRI’s TDS on capital gain on sale of shares is @ 30% & investment income @ 20% and bank interest @ 30%, plus 3% cess, why this harsh method taxation to NRI’s.
9 As per new TDS provision if PAN number is not provided than such TDS is to be deducted @ 20% instead of normal rate. Sir, lot of Middle East expatriates working in remote areas. Though they have invested some of their savings in mutual funds & shares about few years ago (though their investment value eroded in last 2 years because of share market down fall) and their dividend income is such a low some time bank collection charges are much higher than dividend income, it is also very cumbersome & tedious procedure for obtaining PAN card for NRI’s. finally now a days income tax dept issuing Scrutiny notices under CASS on the basis of PAN number only. Therefore lot of NRI’s not coming forward for pan cards & even some NRI’s thinking to cancel their PAN number just because of above problems. Therefore we NRI’s pray that this pan requirement for tds purpose for NRI’s may be exempted & scrutiny case selection cannot be made only on the basis of PAN card alone.
10 EET (EXEMT-EXEMT-TAXATION) : under this scheme one can invest money now in PPF or other govt approved savings scheme but when you withdraw you have to pay tax, that means no incentive for savings. only you are postponing present tax liability to future date.
11 For NRI’s filing wealth tax Return is another big problem. We pray that NRI’s may be exempted from filing wealth tax return and more specifically assets held outside India and assets created from foreign currency by NRI’s may be exempted from wealth tax other wise it will create lot of problems like obtaining market valuation of properties every year.
12 Section 264 removed , which says that assessee can file application U\S 264 within one year from the date of assessment order, if CIT(A) filed beyond 30 days & if CIT(A) refuse to condone delay normally assessee prefers 264 now that is removed. Which causes hardship to NRI’s because communication assessment order and instruction NRI’s generally takes beyond 30 days.
13 A foreign company will be considered as Resident company if partial control & management in India.(earlier provision was only full control & management in India) In this case world income will be taxable in India. In the code no where defined what is partial control & management. Ex: tomorrow by just keeping one or two staff in India can it be said as partial control in India. As we are aware that lot of NRI’s opened private limited companies in India for technical purpose only and entire business done outside India by these NRI’s. Now they have to pay tax on earnings made outside India also.
14 U\S 166 of the code, ITO can reopen your case upto 7 years on the basis of subsequent high court or supreme court judgment. Take a case of M.A.Rafiq who was partner of RSM chartered Accountant DUBAI. He obtained Advance Ruling on India & UAE DTAA in 1997, and enjoyed capital gain exemption on sale of shares. 1n 2005 in the case of Cyril periera case AAR ruled that Indo UAE DTAA benefit not available to Cyril periera because no tax in Dubai. In 2005 same AAR in Abdul Razak Memon case ruled that Indo UAE DTAA applicable but capital gain tax exemption not available. Suppose on the basis of crycil periera case for A.Y. 2004-05 opened in 2009 (because as per sec 166 ITO can reopen the case in 7 year) and Rafiq died in 2006, and during his life time case not reopened, now one can imagine the difficulties faced by Rafiq’s legal heirs at this juncture. earlier law was reopening was done only for limited extent like mistake apparent from records only.
15 As per sec 167 of the code the rectification, can be done by ITO in next 2 years even on the basis of subsequent court or tribunal judgments in any other case. How the assessee know what will be law or after 2 years, So Section 166 & 167 most dangerous in the code which will give lot of litigation harassment to the assessee. Same are required to be dropped from the code.
16 GENERAL ANTI AVOIDANCE RULE-GAAR: Another Most Dangerous provision in direct code. Is GAAR. the CIT can treat any transaction entered into by the assessee as impermissible avoidance agreement and tax can be charged if the CIT is of the opinion that the assessee has avoided any tax by entering into such transaction.
17 Fifth Schedule of Direct Tax code gives very wide &dangerous powers to Tax Recovery officer, like attach movable & immovable properties , take coercive measures etc. Part V of the fifth schedule gives power even for arrest of the tax defaulter. Take example Mr. X filed a income tax return showing income of say Rs 2,00,000 & case selected for scrutiny & say ITO assessed income as Rs. 8,00,000 on this additional Rs 6,00,000 he requires to pay tax of Rs 1,80,000 plus equal amount of penalty i.e. another Rs. 1,80,000 plus, interest come app. to another Rs, 3,00,000. thus his total liability (1,80,000 1,80,000 = 3,00,000 =)6,60,000 on a income of Rs. 2,00,000. in such a situation if Mr. X fail to pay 6,60,000 in this situation if TRO arrest him please imagine embarrassment of Mr. presuming X files CIT(Appeal) which is first appeal & say here entire addition was deleted than how do we justify his arrest
THIS IS THE FIRST TIME INCOME TAX HISTORY( i.e. in Last 50 Years) ARREST PROVISION IS BROUGHT INTO INCOME TAX ACT, which is very danger & offen misused this provision by the tax recovery officers.
Respected Sir, these sections of Direct Tax Code will adversely affect all NRIs in many ways. It will lead to multitude of litigations with NRIs and discourage NRI investments in India as well as remittances. As NRIs work abroad, this may result in unnecessary harassment of their family members back home by tax officials. NRIs will be hard put to fight legal cases slapped against them as they cannot present themselves in courts at home. Thousands of NRIs, particularly those working in the Gulf are blue collar workers and they should not be subjected to unnecessary harassment.
So we request you not to change the existing system and urge the government to drop the new tax code clauses affecting the NRIs. A large number of NRIs live away from their families in India and are already facing social and psychological pressures and any move to add to their woes should be dropped.
In fact because of the global recession thousands of NRIs are losing jobs or getting reduced salaries. Governments like the one in Kerala are trying to introduce schemes to rehabilitate those returning from abroad after losing jobs. At this juncture, the Government of India should be introducing helpful and liberal taxation to help the NRIs and not introduce new clauses that will take away their ever dwindling income. The hard-earned foreign exchange from NRIs also has helped the government in meeting foreign debt obligations and also in buying gold from the IMF recently. So we request the government to help the NRIs more with liberal tax regime so that they can contribute more to the welfare of the motherland.
Yours truly,
For Pravasi Bandhu Welfare Trust
Sd/
K V Shamsudheen
Chairman
Pravasi Bandhu Welfare Trust
(Reg. No. 325/IV/2001)
Registered Office:Calicut 673001, India
Overseas Contact:
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
Email:kvshams@gmail.com
www.pravasibandhu.com
November 7, 2009
Shri: Dr. Pranab Mukharjee
Hon. Finance Minister
Ministry of Finance
North Block Ist floor, Parliament Street
NEW DELHI 1100001
Dear Sir:
Sub: REPRESENTATION FOR DIRECT TAX CODE:
Sir, first let me congratulate you for bringing Direct Tax Code draft in such a shortest time. But we NRI’s staying UAE feels that this Direct Tax Code Punishes NRI’s by laying higher taxes than the Resident Indians. Sir, as you are aware that in 1992 the then Hon. Finance Minister Dr. Manmohan Singh brought a scheme known as FOREIGN REMITTANCE SCHEME 1992 in this scheme App. 9mn US $ foreign currency came to India out of this App. US $ 6 mn came from middle east \ Gulf countries alone.
Sir, in UAE majority of expatriates from Kerala & other south Indians states and 95% of these expatriates are employed and staying mostly as bachelors, leaving their family & loved ones in India working here on odd whether conditions the only motto of these people is to earn money & send to their families in India. You will surprise that large number of Middle east NRI’s are holding lot of Bank Fixed deposits in Indian Nationalised banks like SBI’s etc.
Sir, since last 50 years (i.e. from inceptions of income Tax Act 1961) always NRI’s Treated special status and given lot of tax benefits because they are contributing foreign exchange reserves to Indian government. But this is the first time in last 50 years NRI’s are placed in maximum disadvantageous position by way of higher taxation as compare to the Resident Indians , therefore on behalf of these NRI’s I am drawing your kind attention to the following clauses of the Direct Tax Code Provisions:
1 Section 4 of IT Act amended & Resident but ordinarily (R& OR) status has been proposed to be removed. By which NRI’s foreign income for subsequent 2 years is will be taxable, sir as we are aware that generally NRI’s also keep some portions of their savings abroad to future contingencies like education of children’s or to meet medical expenses etc. by this amendment NRI’s are required to pay taxes on these foreign deposit from very second year of their returning to India. similarly now professional like visiting doctors , professors etc who are visiting to foreign country for their profession are also hit by this provision.
2 Capital Gain: Majority of NRI’s holding Indian company equity shares for long time, now this attracts 30%capital gain tax which is the biggest hardship to the NRI’s investors. Therefore we urge that as per old system long term capital gain on sale of shares may be continued.
3 It is more heartening to note that direct tax code proposes that there is no difference of tax between long term & short term capital gain & section 112 to 115 dealing specially NRI’s capital gain tax on investment is going to be deleted in the tax code.
4 Interest income on investment: under new code it will be taxed @ 20% for NRI’s where as resident Indian will pay tax only 10% up to income of Rs 10 lakhs , hence we pray that NRI’s interest income may be placed at par with Resident income i.e. upto Rs 10 lakhs the tax rates may be brought down to 10% for NRI’s also.
It is also said that other income like bank interest etc of NRI’s charged @30% if this is true kindly look this following example :
Mr. Shaji Non resident Indian staying in UAE and assume that he receives Rs 3 lakhs PA from SBI Cochin as interest on his fixed deposit. Now he is paying tax only of Rs 14,000 as under:
1ST 1,60,0000 NIL
Nest 1,40,000 10% 14,000
If new code comes he has to pay 30% tax on his Rs. 3 lakhs bank interest income and liable to pay tax of Rs.90,000 as against his present tax liability of Rs 14,000 only, kindly look into this issue. And we humbly pray that NRI’s may be given confessional tax benefit like Residents.
5 Some expert also says that since word used in the code for NRI’s Tax is as per Companies rate means No basic exemption of Rs 1.60 lakhs available & confessional rates of taxes like 20% for next 15 lakhs also not available, and 80 ( C ) deductions also not available which will effect very NRI’s badly.
6 Most of these NRI’s holding their one or two houses in India which will be used after their retirement. The new tax code proposes income of 6% retable value & where no retable value available 6% cost of construction or cost of acquisition. Suppose Mr. Shaji constructed house in his native place at Kerala say cost of Rs 1 cr & say no retable value certificate available & no rent received still as per new code his income from house property is Rs 6 lakhs PA (6% of 1 CR) & he is liable to pay tax (on Rs 6 lakhs @30%) 1,80,000 PA ?
Further if house is self occupied no deduction will be available for local taxes paid and interest paid on housing loan, now what happens lot of NRI’s acquired houses in India on the support housing loan from Indian banks & some hoses are still under construction what will be their fate if they are retiring where shortly and planning to spent their retired life in India. Are they liable such exhiborant tax ?
7 Sec 54 amended at present ,selling of one house & buying another residential house no capital gain tax will be payable subject to certain conditions, now it is propose to amend this section & capital gain benefit is available for only one residential house that means if a person wants to change one house to another first he require to sell old house than by new else capital gain tax will be payable on sale of old house. which again penalizes those NRIs who invested in 2 or 3 residential houses as per their future planning to distribute these houses among their children’s or brothers etc. 10 TDS: At present only NRI’s are liable to pay education cess @2% and higher education cess @1% on TDS amount. But from 1st October 2009 local Resident TDS this 3% cess is not applicable. No logic for keeping cess only NRI’s on TDS not understood , therefore we pray that NRI’s may be kept at par with local Residents for TDS purposes.
8 TDS for foreign sports person is only @ 10% than why for NRI’s TDS on capital gain on sale of shares is @ 30% & investment income @ 20% and bank interest @ 30%, plus 3% cess, why this harsh method taxation to NRI’s.
9 As per new TDS provision if PAN number is not provided than such TDS is to be deducted @ 20% instead of normal rate. Sir, lot of Middle East expatriates working in remote areas. Though they have invested some of their savings in mutual funds & shares about few years ago (though their investment value eroded in last 2 years because of share market down fall) and their dividend income is such a low some time bank collection charges are much higher than dividend income, it is also very cumbersome & tedious procedure for obtaining PAN card for NRI’s. finally now a days income tax dept issuing Scrutiny notices under CASS on the basis of PAN number only. Therefore lot of NRI’s not coming forward for pan cards & even some NRI’s thinking to cancel their PAN number just because of above problems. Therefore we NRI’s pray that this pan requirement for tds purpose for NRI’s may be exempted & scrutiny case selection cannot be made only on the basis of PAN card alone.
10 EET (EXEMT-EXEMT-TAXATION) : under this scheme one can invest money now in PPF or other govt approved savings scheme but when you withdraw you have to pay tax, that means no incentive for savings. only you are postponing present tax liability to future date.
11 For NRI’s filing wealth tax Return is another big problem. We pray that NRI’s may be exempted from filing wealth tax return and more specifically assets held outside India and assets created from foreign currency by NRI’s may be exempted from wealth tax other wise it will create lot of problems like obtaining market valuation of properties every year.
12 Section 264 removed , which says that assessee can file application U\S 264 within one year from the date of assessment order, if CIT(A) filed beyond 30 days & if CIT(A) refuse to condone delay normally assessee prefers 264 now that is removed. Which causes hardship to NRI’s because communication assessment order and instruction NRI’s generally takes beyond 30 days.
13 A foreign company will be considered as Resident company if partial control & management in India.(earlier provision was only full control & management in India) In this case world income will be taxable in India. In the code no where defined what is partial control & management. Ex: tomorrow by just keeping one or two staff in India can it be said as partial control in India. As we are aware that lot of NRI’s opened private limited companies in India for technical purpose only and entire business done outside India by these NRI’s. Now they have to pay tax on earnings made outside India also.
14 U\S 166 of the code, ITO can reopen your case upto 7 years on the basis of subsequent high court or supreme court judgment. Take a case of M.A.Rafiq who was partner of RSM chartered Accountant DUBAI. He obtained Advance Ruling on India & UAE DTAA in 1997, and enjoyed capital gain exemption on sale of shares. 1n 2005 in the case of Cyril periera case AAR ruled that Indo UAE DTAA benefit not available to Cyril periera because no tax in Dubai. In 2005 same AAR in Abdul Razak Memon case ruled that Indo UAE DTAA applicable but capital gain tax exemption not available. Suppose on the basis of crycil periera case for A.Y. 2004-05 opened in 2009 (because as per sec 166 ITO can reopen the case in 7 year) and Rafiq died in 2006, and during his life time case not reopened, now one can imagine the difficulties faced by Rafiq’s legal heirs at this juncture. earlier law was reopening was done only for limited extent like mistake apparent from records only.
15 As per sec 167 of the code the rectification, can be done by ITO in next 2 years even on the basis of subsequent court or tribunal judgments in any other case. How the assessee know what will be law or after 2 years, So Section 166 & 167 most dangerous in the code which will give lot of litigation harassment to the assessee. Same are required to be dropped from the code.
16 GENERAL ANTI AVOIDANCE RULE-GAAR: Another Most Dangerous provision in direct code. Is GAAR. the CIT can treat any transaction entered into by the assessee as impermissible avoidance agreement and tax can be charged if the CIT is of the opinion that the assessee has avoided any tax by entering into such transaction.
17 Fifth Schedule of Direct Tax code gives very wide &dangerous powers to Tax Recovery officer, like attach movable & immovable properties , take coercive measures etc. Part V of the fifth schedule gives power even for arrest of the tax defaulter. Take example Mr. X filed a income tax return showing income of say Rs 2,00,000 & case selected for scrutiny & say ITO assessed income as Rs. 8,00,000 on this additional Rs 6,00,000 he requires to pay tax of Rs 1,80,000 plus equal amount of penalty i.e. another Rs. 1,80,000 plus, interest come app. to another Rs, 3,00,000. thus his total liability (1,80,000 1,80,000 = 3,00,000 =)6,60,000 on a income of Rs. 2,00,000. in such a situation if Mr. X fail to pay 6,60,000 in this situation if TRO arrest him please imagine embarrassment of Mr. presuming X files CIT(Appeal) which is first appeal & say here entire addition was deleted than how do we justify his arrest
THIS IS THE FIRST TIME INCOME TAX HISTORY( i.e. in Last 50 Years) ARREST PROVISION IS BROUGHT INTO INCOME TAX ACT, which is very danger & offen misused this provision by the tax recovery officers.
Respected Sir, these sections of Direct Tax Code will adversely affect all NRIs in many ways. It will lead to multitude of litigations with NRIs and discourage NRI investments in India as well as remittances. As NRIs work abroad, this may result in unnecessary harassment of their family members back home by tax officials. NRIs will be hard put to fight legal cases slapped against them as they cannot present themselves in courts at home. Thousands of NRIs, particularly those working in the Gulf are blue collar workers and they should not be subjected to unnecessary harassment.
So we request you not to change the existing system and urge the government to drop the new tax code clauses affecting the NRIs. A large number of NRIs live away from their families in India and are already facing social and psychological pressures and any move to add to their woes should be dropped.
In fact because of the global recession thousands of NRIs are losing jobs or getting reduced salaries. Governments like the one in Kerala are trying to introduce schemes to rehabilitate those returning from abroad after losing jobs. At this juncture, the Government of India should be introducing helpful and liberal taxation to help the NRIs and not introduce new clauses that will take away their ever dwindling income. The hard-earned foreign exchange from NRIs also has helped the government in meeting foreign debt obligations and also in buying gold from the IMF recently. So we request the government to help the NRIs more with liberal tax regime so that they can contribute more to the welfare of the motherland.
Yours truly,
For Pravasi Bandhu Welfare Trust
Sd/
K V Shamsudheen
Chairman
Pravasi Bandhu Welfare Trust
(Reg. No. 325/IV/2001)
Registered Office:Calicut 673001, India
Overseas Contact:
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
Email:kvshams@gmail.com
www.pravasibandhu.com
November 7, 2009
Tuesday, October 27, 2009
Universal Charger for Mobile Phones
Universal Charger
Khaleej Times
26 October 2009
The approval of the universal mobile charger by the International Telecommunication Union (ITU) is great news for the people who love the earth.
Once implemented, one single mobile charger and car charger can be used for all brands of mobiles.
Also, the charger will not be part of the mobile phone kit. This will reduce the value of the mobile and also eliminate usage of tonnes of plastic and harmful material.
It will also help reduce the size of the packet thereby saving trees and shipping cost. The ITU should also introduce universal earphones for mobile phones.
-KV Shamsudheen, Sharjah
Khaleej Times
26 October 2009
The approval of the universal mobile charger by the International Telecommunication Union (ITU) is great news for the people who love the earth.
Once implemented, one single mobile charger and car charger can be used for all brands of mobiles.
Also, the charger will not be part of the mobile phone kit. This will reduce the value of the mobile and also eliminate usage of tonnes of plastic and harmful material.
It will also help reduce the size of the packet thereby saving trees and shipping cost. The ITU should also introduce universal earphones for mobile phones.
-KV Shamsudheen, Sharjah
Wednesday, October 7, 2009
Let students spread peace
The National
Monday, October 5, 2009
Let students spread peace
I had a chance to attend the observation of the International Nonviolence Day organized by the Indian Consul General. The function was excellent with the presence of diplomats of various countries and local dignitaries. Their speeches on the relevance of Gandhian principles enlightened the function.
We could make this day more meaningful if the Indian mission would take an initiative to conduct essay and elocution competitions on “The relevance of non-violence in today’s turbulent world” among school children in the month of September every year and give a trophy for the best performer. It will give a yearly opportunity for the young generation to study Gandhian principles which will sow the seeds of peace in their minds.
K V Shamsudheen,Sharjah
Monday, October 5, 2009
Let students spread peace
I had a chance to attend the observation of the International Nonviolence Day organized by the Indian Consul General. The function was excellent with the presence of diplomats of various countries and local dignitaries. Their speeches on the relevance of Gandhian principles enlightened the function.
We could make this day more meaningful if the Indian mission would take an initiative to conduct essay and elocution competitions on “The relevance of non-violence in today’s turbulent world” among school children in the month of September every year and give a trophy for the best performer. It will give a yearly opportunity for the young generation to study Gandhian principles which will sow the seeds of peace in their minds.
K V Shamsudheen,Sharjah
Friday, September 25, 2009
Indian ambassador sets an austere example
TheNational
Indian ambassador sets an austere example
http://www.thenational.ae/apps/pbcs.dll/article?AID=/20090925/NATIONAL/709249848/1010
Praveen Menon
Last Updated: September 25. 2009 12:18AM UAE / September 24. 2009 8:18PM GM
DUBAI // The Indian ambassador to the UAE strives to live an austere life and avoid large, extravagant events, particularly in light of the drought that is affecting much of India at the moment.
Talmiz Ahmad cited the “obscene display of wealth” by the expatriate community, which he called inappropriate.
“I personally believe both as part of human values and indeed my own personal commitment that we have to be austere in our personal life and our public life,” Mr Ahmad said.
This year, more than half of India’s districts have been hit by droughts in what is described as the driest monsoon season in several years.
Almost 700 million people are expected to be affected.
Several Indian ministers have initiated an austerity drive led by the ruling Congress party.
Its chief, Sonia Gandhi, urged her party leaders to give up one-fifth of their salaries. She is travelling economy class, and her son and Congress general secretary, Rahul Gandhi, have renounced flight travel and taken the train between states, further reinforcing the austerity message among politicians, bureaucrats and affluent Indians.
Critics have dismissed these gestures as political stunts, but Mr Ahmad said of the espousal of austerity in India emerged from real concern over the failure of rainfall and consequent drought, a situation that exacerbated the impact of the global recession on the country.
“There is a very immediate requirement around us,” he said.
“India is a poor country. It has a very large number of extremely poor people. Display of wealth of any kind is offensive.”
Mr Ahmad made his comments in response to a question about the lifestyle of elite Indians in the UAE, who continue to organise grand parties and gatherings despite the poor living conditions and salaries of many of their compatriots and worsening food crises back home.
“I enforce it in my own life,” he said, “and by and large events that I attend I ensure that they are modest in ostentation.”
Mr Ahmad’s comments question the lifestyles of the large numbers of expatriate Indians in the Middle East and around the world, but he said he would not expect anyone else to follow his example.
“It’s not my business to tell others how to run their lives,” he said. “It’s not appropriate to be intrusive because then you intrude into freedom of other people. However, it is a universally accepted norm that vulgar display of wealth in a climate of poverty and deprivation is not appropriate, and it is indeed offensive. I am not referring to any specific event, but this is a general view.”
He acknowledged that for diplomats abroad, the situation is sometimes unavoidable. “There are certain norms of public conduct,” he conceded. “If I have a ministerial visit, I will host a banquet in a setting that is commensurate with seniority of guest. There is a fine line between vulgar display and stylish display. I would go for stylish display.”
Noting that Indian diplomats and senior officials often have to meet expectations outside the country, Mr Ahmad said the embassy’s National Day celebrations would be at the Hilton hotel in Abu Dhabi.
“We do have to engage with five-star culture,” he said, “but I avoid extremes of ostentatious display.”
Dubai and the UAE as a whole are often known as a hub for the affluent Indian community. Business tycoons, Bollywood stars and celebrities fly to Dubai for parties, gatherings and functions conducted by the large Indian community. Parties are often held in five-star hotels and plush auditoriums.
Fashion designers such as Manish Malhotra and others selling designer clothes and accessories have showrooms in Dubai that cater largely to the rich Indian community.
Mr Ahmad was not alone in his call for more austerity. Several noted Indian expatriates also have made the point that the fortunate few must not forget the many.
Sudhir Shetty, chief operating officer for global operations at the UAE Exchange, said: “I think more than 80 per cent of the Indians here live simple lives. However, it’s the elite 20 per cent who live expensive lives. No matter what you tell them, they will not compromise.”
Mr Shetty is also a prominent personality in the Indian community. “This kind of restraint unfortunately can’t be insisted upon,” he said. “I feel that expatriates should be careful, but also a lot more needs to be done by the Indian government locally if the problem of drought is to be resolved.”
K V Shamshudeen, chairman of Pravasi Bandhu Welfare Trust, who also ran a radio show advising Indians on financial problems, said there was “maximum need to be modest with spending”.
“Iftar parties and other festivities organised by the Indian community over the last few weeks have largely been for people who eat very well everyday,” he noted.
“We must remember that there are many poor Indians here and back home who do not get a decent meal.”
Meanwhile, middle-class families in the UAE sometimes forget what is going on at home.
“I must admit that I organised a grand party for a group of friends who came from the US last week,” said Anthony D’Souza, an engineering consultant who lives with his family in Bur Dubai. “We often are disconnected with realities in India and lead lavish lives here. I feel we must exercise control [spending] in such an environment.”
Please read the editorial in The National on this remark:
http://www.thenational.ae/section/OPINION?profile=1006
Indian ambassador sets an austere example
http://www.thenational.ae/apps/pbcs.dll/article?AID=/20090925/NATIONAL/709249848/1010
Praveen Menon
Last Updated: September 25. 2009 12:18AM UAE / September 24. 2009 8:18PM GM
DUBAI // The Indian ambassador to the UAE strives to live an austere life and avoid large, extravagant events, particularly in light of the drought that is affecting much of India at the moment.
Talmiz Ahmad cited the “obscene display of wealth” by the expatriate community, which he called inappropriate.
“I personally believe both as part of human values and indeed my own personal commitment that we have to be austere in our personal life and our public life,” Mr Ahmad said.
This year, more than half of India’s districts have been hit by droughts in what is described as the driest monsoon season in several years.
Almost 700 million people are expected to be affected.
Several Indian ministers have initiated an austerity drive led by the ruling Congress party.
Its chief, Sonia Gandhi, urged her party leaders to give up one-fifth of their salaries. She is travelling economy class, and her son and Congress general secretary, Rahul Gandhi, have renounced flight travel and taken the train between states, further reinforcing the austerity message among politicians, bureaucrats and affluent Indians.
Critics have dismissed these gestures as political stunts, but Mr Ahmad said of the espousal of austerity in India emerged from real concern over the failure of rainfall and consequent drought, a situation that exacerbated the impact of the global recession on the country.
“There is a very immediate requirement around us,” he said.
“India is a poor country. It has a very large number of extremely poor people. Display of wealth of any kind is offensive.”
Mr Ahmad made his comments in response to a question about the lifestyle of elite Indians in the UAE, who continue to organise grand parties and gatherings despite the poor living conditions and salaries of many of their compatriots and worsening food crises back home.
“I enforce it in my own life,” he said, “and by and large events that I attend I ensure that they are modest in ostentation.”
Mr Ahmad’s comments question the lifestyles of the large numbers of expatriate Indians in the Middle East and around the world, but he said he would not expect anyone else to follow his example.
“It’s not my business to tell others how to run their lives,” he said. “It’s not appropriate to be intrusive because then you intrude into freedom of other people. However, it is a universally accepted norm that vulgar display of wealth in a climate of poverty and deprivation is not appropriate, and it is indeed offensive. I am not referring to any specific event, but this is a general view.”
He acknowledged that for diplomats abroad, the situation is sometimes unavoidable. “There are certain norms of public conduct,” he conceded. “If I have a ministerial visit, I will host a banquet in a setting that is commensurate with seniority of guest. There is a fine line between vulgar display and stylish display. I would go for stylish display.”
Noting that Indian diplomats and senior officials often have to meet expectations outside the country, Mr Ahmad said the embassy’s National Day celebrations would be at the Hilton hotel in Abu Dhabi.
“We do have to engage with five-star culture,” he said, “but I avoid extremes of ostentatious display.”
Dubai and the UAE as a whole are often known as a hub for the affluent Indian community. Business tycoons, Bollywood stars and celebrities fly to Dubai for parties, gatherings and functions conducted by the large Indian community. Parties are often held in five-star hotels and plush auditoriums.
Fashion designers such as Manish Malhotra and others selling designer clothes and accessories have showrooms in Dubai that cater largely to the rich Indian community.
Mr Ahmad was not alone in his call for more austerity. Several noted Indian expatriates also have made the point that the fortunate few must not forget the many.
Sudhir Shetty, chief operating officer for global operations at the UAE Exchange, said: “I think more than 80 per cent of the Indians here live simple lives. However, it’s the elite 20 per cent who live expensive lives. No matter what you tell them, they will not compromise.”
Mr Shetty is also a prominent personality in the Indian community. “This kind of restraint unfortunately can’t be insisted upon,” he said. “I feel that expatriates should be careful, but also a lot more needs to be done by the Indian government locally if the problem of drought is to be resolved.”
K V Shamshudeen, chairman of Pravasi Bandhu Welfare Trust, who also ran a radio show advising Indians on financial problems, said there was “maximum need to be modest with spending”.
“Iftar parties and other festivities organised by the Indian community over the last few weeks have largely been for people who eat very well everyday,” he noted.
“We must remember that there are many poor Indians here and back home who do not get a decent meal.”
Meanwhile, middle-class families in the UAE sometimes forget what is going on at home.
“I must admit that I organised a grand party for a group of friends who came from the US last week,” said Anthony D’Souza, an engineering consultant who lives with his family in Bur Dubai. “We often are disconnected with realities in India and lead lavish lives here. I feel we must exercise control [spending] in such an environment.”
Please read the editorial in The National on this remark:
http://www.thenational.ae/section/OPINION?profile=1006
Don't Re-introduce User's Fee in Cochin Airport
PRAVASI BANDHU WELFARE TRUST
(Regd. In India No. 325/IV/2001)
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
www.pravasibandhu.com
Email: kvshams@gmail.com
January 15, 2009
Sri V S Achudanandan
Chief Minister of Kerala
Thiruvanandapuram
Dear Sir,
Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act, 1956 on 30 March 1994, with equity participation from the Government of Kerala, Industrialists, Financial Institutions, Airport Service Providers and the Public - majority of them are non resident Indians totalling 11,000 from 30 countries. Cochin International Airport Limited (CIAL) has become the First-of-its-kind airport developed under the PPP model.
In the 11 members board of directors there are four state ministers, one chief secretary of Kerala and five prominent non-resident Indian business men and a well experienced managing director.
Among NRI investors there are thousands of very small investors who invested Rs 10,000 their hardened money with expectation of reasonable return way back 1995 in this dream project. Unfortunately they had to wait 11 years to get the maiden dividend of 10% in 2006.
Where as the investors and other NRIs was penalised with Users Fee when Cochin International Airport started the operation in 1999 as back lash and punishment for venturing such unique project in Kerala. But, NRIs from all over the world agitated against User’s Fee, as a result the Airport Authorities compelled to withdraw the User’s Fee.
Again the proposal to re instate the User Fee presented in last board meeting by some greedy board members including NRIs with the behind the seen support of the government and some resident investors. We could realise that Board Member like Mr. M A Yousef Ali opposed the proposal and kept pending for the time being. But we realised that the government also want to introduce the User’s Fee again to get bumper dividend every year, because this one the very few companies giving dividend to the government investment even though they invested hundred of companies in Kerala.
Kerala Finance Minister Shri T M Thomas Issac, keep of talking about development of Kerala with financial participation of non-resident Indians.
When CIAL invite investment from NRIs they offered many sweet promises, when the project had completed the CIAL bite back the NRIs.
So, we request the CIAL and all the Board Members of CIAL and resident shareholders don’t be greedy, please do not reinstate Users Fee. You must realise that if it implemented NRIs, will not sit ideal. Kerala Finance minister has planned to develop Kerala with NRI financial participation, the decisions to reinstate User’s Fee will jeopardise such proposals.
Thank you,
Yours truly,
For Pravasi Bandhu Welfare Trust
K V SHAMSUDHEEN
Chairman
(Regd. In India No. 325/IV/2001)
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
www.pravasibandhu.com
Email: kvshams@gmail.com
January 15, 2009
Sri V S Achudanandan
Chief Minister of Kerala
Thiruvanandapuram
Dear Sir,
Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act, 1956 on 30 March 1994, with equity participation from the Government of Kerala, Industrialists, Financial Institutions, Airport Service Providers and the Public - majority of them are non resident Indians totalling 11,000 from 30 countries. Cochin International Airport Limited (CIAL) has become the First-of-its-kind airport developed under the PPP model.
In the 11 members board of directors there are four state ministers, one chief secretary of Kerala and five prominent non-resident Indian business men and a well experienced managing director.
Among NRI investors there are thousands of very small investors who invested Rs 10,000 their hardened money with expectation of reasonable return way back 1995 in this dream project. Unfortunately they had to wait 11 years to get the maiden dividend of 10% in 2006.
Where as the investors and other NRIs was penalised with Users Fee when Cochin International Airport started the operation in 1999 as back lash and punishment for venturing such unique project in Kerala. But, NRIs from all over the world agitated against User’s Fee, as a result the Airport Authorities compelled to withdraw the User’s Fee.
Again the proposal to re instate the User Fee presented in last board meeting by some greedy board members including NRIs with the behind the seen support of the government and some resident investors. We could realise that Board Member like Mr. M A Yousef Ali opposed the proposal and kept pending for the time being. But we realised that the government also want to introduce the User’s Fee again to get bumper dividend every year, because this one the very few companies giving dividend to the government investment even though they invested hundred of companies in Kerala.
Kerala Finance Minister Shri T M Thomas Issac, keep of talking about development of Kerala with financial participation of non-resident Indians.
When CIAL invite investment from NRIs they offered many sweet promises, when the project had completed the CIAL bite back the NRIs.
So, we request the CIAL and all the Board Members of CIAL and resident shareholders don’t be greedy, please do not reinstate Users Fee. You must realise that if it implemented NRIs, will not sit ideal. Kerala Finance minister has planned to develop Kerala with NRI financial participation, the decisions to reinstate User’s Fee will jeopardise such proposals.
Thank you,
Yours truly,
For Pravasi Bandhu Welfare Trust
K V SHAMSUDHEEN
Chairman
Friday, September 18, 2009
New Direct Tax Code Proposal, NRIs treated as Not Required Indians!
My View
The tax code is only proposal, given to public domain for discussion, debate & suggestions, in October last week CBDT will make necessary amendment thereafter it will be sent to finance ministry than in winter session of parliament bill will be presented to the parliament,than again some time given to MP's for studding this tax code bill (though most of our Hon. MP's donot understand & donot take trouble to read such big book also), thereafter it goes to Rajaya Sabha, after passing in Rajasabha it will go to President for her Ascent. thereafter it becomes law of the land & Govt trying to complete all these process before 28th February 2010 and wants to implement from1st April 2010 .
This code is very complicated & very harsh on NRI's . iam sure powerful NRI's like L.N.Metal, Hindujas & several Tycoons from US & Maricious definitely bring proper pressure on Govt to protect their interest.
We are concern on how it effect middle income NRIs. The code is not a issue for low income category of NRIs.
There will be lot of opposition in India also on several clauses and even if they get it passed at Lokashabha (because UPA has majority) but in Rajaya sabha there are 220 members & UPA has got only 90 members. therefore recently judges bill though passed in Loksabha could not get through from Rajaya sabha. therefore this Govt is going slow on various bills probably same fate may be for this tax code also.
Please read the report
The Times of India
NRIs treated as Not Required Indians!
Mukesh Pate l6 September 2009, 10:58pm IST
|
Indubhai Amin, a non-resident Indian (NRI) settled in the UK earns interest income of Rs 3 lakh on his non-resident ordinary account bank deposit in ndia in the current FY 2009-10. Enjoying his personal exemption limit of Rs 1.60 lakh and the eligible deduction of Rs 1 lakh u/s 80C, Amin is comfortable paying income tax of Rs 4,000 in the first slab of 10 per cent on his effective taxable income of Rs 40,000.
Flat tax of 20% and 30%
A huge shock awaits Amin and millions of NRIs, in regard to taxation of their interest and investment income and capital gains earned in India, proposed to be treated under the draft Direct Tax Code as "income from special sources."
In 2011-12, on the same interest income of Rs 3 lakh, Amin will be required to pay a hefty tax of Rs 60,000 at the flat rate of 20 per cent, without being eligible to claim any basic exemption or other deduction, as provided under rule three of the First Schedule to the Code.
Moreover, all capital gains earned by a non-resident will attract a flat tax of 30 per cent, irrespective of the amount of capital gains. While a resident Indian will be required to pay tax of Rs 3.84 lakh on his taxable income of Rs 25 lakh, an NRI earning equivalent capital gains will be called upon to pay almost double tax of Rs 7.5 lakh.
Hair-raising drafting
New section 13 (2) provides that such ‘special income’ shall be computed in accordance with the provisions of the Ninth Schedule, the drafting of which is literally hair-raising. It provides that the amount of accrual or receipt shall be computed as the taxable income, and no loss, allowance or deduction shall be allowed, as the same shall be presumed to have been granted. The only exception in this regard, in respect of capital gains arising from the transfer of equity shares or units of equity oriented mutual fund chargeable to STT, is quite amusing, as it stands redundant in view of the proposal to abolish STT (a classic instance of incoherent drafting).
The draftsman does not seem to have realized the harsh implications. It means that if an NRI sells a capital asset purchased for Rs 10 lakh at Rs 30 lakh, he will be required to pay tax of Rs 9 lakh at 30 per cent on the gross sale consideration of Rs 30 lakh without any deduction even for the cost of acquisition of Rs 10 lakh (not to mention any benefit of indexation on the same).
Determination of residential status
The residential status of an individual under the Code is proposed to be determined as per the current norms. However, the status of "not ordinarily resident" (NOR) is proposed to be eliminated. Despite the above, Clause 24 of the Sixth Schedule has still provided for exemption in respect of interest earned on foreign currency deposits in the case of NOR. Poor drafting indeed!
The Code has proposed to retain the current exemptions availed by a non-resident in case of interest earned on NRE and FCNR deposits with banks.
Special exemption for returning NRIs
A useful exemption has been provided in case of income earned outside India, if it is not derived from a business controlled from India, in the financial year in which the returning NRI becomes an Indian resident and the immediately succeeding financial year. However, the benefit of the said exemption would be available, only if such individual was a non-resident for nine years immediately preceding the financial year in which he becomes a resident.
Wealth-tax liability for NRIs
Proposed Section 102 of the Code provides for wealth tax liability in the case of the value of all global assets of an individual or HUF. However, an exemption has been provided in case of the value of assets located outside India in case of an individual who is not a citizen of India or an individual or HUF not resident in India. Hence, while returning NRIs who are non-citizens will enjoy wealth-tax exemption for their overseas assets, NRIs with Indian citizenship becoming residents will attract wealth-tax liability on such assets held abroad.
Illogical exemption under wealth-tax
Talking about wealth tax, the Code prescribes an exemption in respect of any house or plot of land belonging to an individual or HUF, if it is acquired before April 1, 2000. It is difficult to understand the logic as to why this exemption has been denied in all cases where such immovable property is acquired after March 31, 2000!
Proposals That Will Hurt the Global Indian Sentiment
Flat Rate of Tax
20% flat tax on interest & other investment income
30% flat tax on all capital gains
Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income
No Personal Exemption
No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources’.
Weird Interpretation
Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.
What Discrimination!
Ironical but true! Non-Indian sportspersons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad
The tax code is only proposal, given to public domain for discussion, debate & suggestions, in October last week CBDT will make necessary amendment thereafter it will be sent to finance ministry than in winter session of parliament bill will be presented to the parliament,than again some time given to MP's for studding this tax code bill (though most of our Hon. MP's donot understand & donot take trouble to read such big book also), thereafter it goes to Rajaya Sabha, after passing in Rajasabha it will go to President for her Ascent. thereafter it becomes law of the land & Govt trying to complete all these process before 28th February 2010 and wants to implement from1st April 2010 .
This code is very complicated & very harsh on NRI's . iam sure powerful NRI's like L.N.Metal, Hindujas & several Tycoons from US & Maricious definitely bring proper pressure on Govt to protect their interest.
We are concern on how it effect middle income NRIs. The code is not a issue for low income category of NRIs.
There will be lot of opposition in India also on several clauses and even if they get it passed at Lokashabha (because UPA has majority) but in Rajaya sabha there are 220 members & UPA has got only 90 members. therefore recently judges bill though passed in Loksabha could not get through from Rajaya sabha. therefore this Govt is going slow on various bills probably same fate may be for this tax code also.
Please read the report
The Times of India
NRIs treated as Not Required Indians!
Mukesh Pate l6 September 2009, 10:58pm IST
|
Indubhai Amin, a non-resident Indian (NRI) settled in the UK earns interest income of Rs 3 lakh on his non-resident ordinary account bank deposit in ndia in the current FY 2009-10. Enjoying his personal exemption limit of Rs 1.60 lakh and the eligible deduction of Rs 1 lakh u/s 80C, Amin is comfortable paying income tax of Rs 4,000 in the first slab of 10 per cent on his effective taxable income of Rs 40,000.
Flat tax of 20% and 30%
A huge shock awaits Amin and millions of NRIs, in regard to taxation of their interest and investment income and capital gains earned in India, proposed to be treated under the draft Direct Tax Code as "income from special sources."
In 2011-12, on the same interest income of Rs 3 lakh, Amin will be required to pay a hefty tax of Rs 60,000 at the flat rate of 20 per cent, without being eligible to claim any basic exemption or other deduction, as provided under rule three of the First Schedule to the Code.
Moreover, all capital gains earned by a non-resident will attract a flat tax of 30 per cent, irrespective of the amount of capital gains. While a resident Indian will be required to pay tax of Rs 3.84 lakh on his taxable income of Rs 25 lakh, an NRI earning equivalent capital gains will be called upon to pay almost double tax of Rs 7.5 lakh.
Hair-raising drafting
New section 13 (2) provides that such ‘special income’ shall be computed in accordance with the provisions of the Ninth Schedule, the drafting of which is literally hair-raising. It provides that the amount of accrual or receipt shall be computed as the taxable income, and no loss, allowance or deduction shall be allowed, as the same shall be presumed to have been granted. The only exception in this regard, in respect of capital gains arising from the transfer of equity shares or units of equity oriented mutual fund chargeable to STT, is quite amusing, as it stands redundant in view of the proposal to abolish STT (a classic instance of incoherent drafting).
The draftsman does not seem to have realized the harsh implications. It means that if an NRI sells a capital asset purchased for Rs 10 lakh at Rs 30 lakh, he will be required to pay tax of Rs 9 lakh at 30 per cent on the gross sale consideration of Rs 30 lakh without any deduction even for the cost of acquisition of Rs 10 lakh (not to mention any benefit of indexation on the same).
Determination of residential status
The residential status of an individual under the Code is proposed to be determined as per the current norms. However, the status of "not ordinarily resident" (NOR) is proposed to be eliminated. Despite the above, Clause 24 of the Sixth Schedule has still provided for exemption in respect of interest earned on foreign currency deposits in the case of NOR. Poor drafting indeed!
The Code has proposed to retain the current exemptions availed by a non-resident in case of interest earned on NRE and FCNR deposits with banks.
Special exemption for returning NRIs
A useful exemption has been provided in case of income earned outside India, if it is not derived from a business controlled from India, in the financial year in which the returning NRI becomes an Indian resident and the immediately succeeding financial year. However, the benefit of the said exemption would be available, only if such individual was a non-resident for nine years immediately preceding the financial year in which he becomes a resident.
Wealth-tax liability for NRIs
Proposed Section 102 of the Code provides for wealth tax liability in the case of the value of all global assets of an individual or HUF. However, an exemption has been provided in case of the value of assets located outside India in case of an individual who is not a citizen of India or an individual or HUF not resident in India. Hence, while returning NRIs who are non-citizens will enjoy wealth-tax exemption for their overseas assets, NRIs with Indian citizenship becoming residents will attract wealth-tax liability on such assets held abroad.
Illogical exemption under wealth-tax
Talking about wealth tax, the Code prescribes an exemption in respect of any house or plot of land belonging to an individual or HUF, if it is acquired before April 1, 2000. It is difficult to understand the logic as to why this exemption has been denied in all cases where such immovable property is acquired after March 31, 2000!
Proposals That Will Hurt the Global Indian Sentiment
Flat Rate of Tax
20% flat tax on interest & other investment income
30% flat tax on all capital gains
Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income
No Personal Exemption
No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources’.
Weird Interpretation
Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.
What Discrimination!
Ironical but true! Non-Indian sportspersons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad
Wednesday, September 16, 2009
Fund sought for Gulf returnees
T
Fund sought for Gulf returnees
BY PMA RASHEED
The Gulf Today, 15 Sep 2009
A UAE-based expatriate organisation has urged the Indian government to constitute a bill on a welfare fund to pay pension and other benefits to low-income segment returnees of Non-Residents Indians (NRI).
The Pravasi Bandhu Welfare Trust has sent the proposal to the Indian Union Ministry of Overseas Affairs and various state governments for the welfare fund that will benefit low and middle income NRIs.
According to KV Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, the Central government of India and state governments should implement a legislation to help NRIs from the respective states, emulating the example of the state of Goa in this regard.
The Goa government had recently drafted a bill for the Non-Resident Goans' Welfare aimed at constituting a welfare fund to pay pension and other benefits to non-resident Indians of Goan origin, when they return and settle permanently in Goa.
"The proposed welfare fund for all Indian expatriates would bring great relief for the low and middle-income group among them. The low-income segment faces a challenging financial situation as they have no resources to continue their present lifestyle when they return to India," said Shamsudheen.
"We request various Indian state governments as well as the Ministry of Overseas Indian Affairs to constitute a scheme like Provident Fund to safeguard the low and middle income category of NRIs," he said.
According to him, states such as Kerala, Tamil Nadu, Karnataka, Andhra Predesh, Rajasthan and Bihar should follow the Goa model for the benefit of the expatriates from those states.
"The Non Resident Goans' Welfare Fund proposes that every non-resident Goan (NRG) member contribute Indian rupees 300 per month. Also, the NRG returnee member who settles permanently in Goa shall contribute 100 rupees to the fund each month," he added.
He explained that the Goan government will also contribute two per cent of the fund annually. NRGs aged between 18 and 55 years were eligible to register as a member of the fund. But a member cannot withdraw from the fund for five years.
"The proposed fund would be used for payment of pension to members who completed 60 years. It would also be used for payment of family pension on the death of a member, provide financial assistance during illness or accident, for marriage or maternity benefit of women members," he said.
Fund sought for Gulf returnees
BY PMA RASHEED
The Gulf Today, 15 Sep 2009
A UAE-based expatriate organisation has urged the Indian government to constitute a bill on a welfare fund to pay pension and other benefits to low-income segment returnees of Non-Residents Indians (NRI).
The Pravasi Bandhu Welfare Trust has sent the proposal to the Indian Union Ministry of Overseas Affairs and various state governments for the welfare fund that will benefit low and middle income NRIs.
According to KV Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, the Central government of India and state governments should implement a legislation to help NRIs from the respective states, emulating the example of the state of Goa in this regard.
The Goa government had recently drafted a bill for the Non-Resident Goans' Welfare aimed at constituting a welfare fund to pay pension and other benefits to non-resident Indians of Goan origin, when they return and settle permanently in Goa.
"The proposed welfare fund for all Indian expatriates would bring great relief for the low and middle-income group among them. The low-income segment faces a challenging financial situation as they have no resources to continue their present lifestyle when they return to India," said Shamsudheen.
"We request various Indian state governments as well as the Ministry of Overseas Indian Affairs to constitute a scheme like Provident Fund to safeguard the low and middle income category of NRIs," he said.
According to him, states such as Kerala, Tamil Nadu, Karnataka, Andhra Predesh, Rajasthan and Bihar should follow the Goa model for the benefit of the expatriates from those states.
"The Non Resident Goans' Welfare Fund proposes that every non-resident Goan (NRG) member contribute Indian rupees 300 per month. Also, the NRG returnee member who settles permanently in Goa shall contribute 100 rupees to the fund each month," he added.
He explained that the Goan government will also contribute two per cent of the fund annually. NRGs aged between 18 and 55 years were eligible to register as a member of the fund. But a member cannot withdraw from the fund for five years.
"The proposed fund would be used for payment of pension to members who completed 60 years. It would also be used for payment of family pension on the death of a member, provide financial assistance during illness or accident, for marriage or maternity benefit of women members," he said.
Saturday, September 12, 2009
Colourful Dubai
Khaleej Times
12 September 2009
I appreciate the Municipality’s plan to plant one million trees in Dubai to make the city green (One Million Trees Project in Dubai” KT, September 8). With a little care, we can make the city colourful, as well.
If we plant different species of trees bearing red, yellow and violet flowers, it will make the city vibrant. Also, trees like neem and banyan do not require much care.
-K V Shamsudheen, sharjah
12 September 2009
I appreciate the Municipality’s plan to plant one million trees in Dubai to make the city green (One Million Trees Project in Dubai” KT, September 8). With a little care, we can make the city colourful, as well.
If we plant different species of trees bearing red, yellow and violet flowers, it will make the city vibrant. Also, trees like neem and banyan do not require much care.
-K V Shamsudheen, sharjah
SENDING IT ALL BACK HOME
Sending it all back home
The National
Vinita Bharadwaj
Last Updated: September 12. 2009 2:01AM UAE / September 11. 2009 10:01PM GMT
Most foreign workers come to the UAE to not only make money for themselves, but to support a network of family, friends and others back home. Vinita Bharadwaj reports from India and Dubai on those who sacrifice everything for financial freedom
Vinayagam insists on keeping his family name to himself, because the fear of losing his job is always on his mind.
“I don’t want any trouble from anywhere. I need this simple job, as it has made life for my family better,” says the 35-year-old cleaner, who has lived and worked in Dubai since 2005. Like many unskilled workers from South Asia, the round-faced Vinayagam, who refused to be photographed – again, the fear – arrived in the UAE in pursuit of a dream.
Vinayagam left India two years after the birth of his only son. The boy joined Vinayagam’s two daughters and wife, Lakshmi, in a tiny one-room hut. The house had no bathroom or sanitation facilities and the family of five was surviving on a monthly income of Rs2,000 (Dh150).
Looking to better his lot in life, Vinayagam paid an agent in India the huge sum of Rs35,000 (Dh2,640) to land a job with a Dubai-based construction firm. With no savings to pay the agent’s fee, he pledged the 1,350 sq ft plot of land he owned and secured a loan of Rs48,300 from an illegal moneylender in the Indian state of Tamil Nadu, Vinayagam’s native region.
“The agent’s fee was actually Rs70,000,” he explains. “My land secured me Rs60,000, but the moneylender held back three months’ interest at the rate of Rs3,900 per month. I could pay only half the amount with the loan and had to repay the rest in instalments after coming to Dubai. I gave Rs10,000 to my wife, Rs3,000 to my parents and landed in Dubai with Rs300 (Dhs23) in my pocket.”
Vinayagam’s job profile and salary details were clearly explained to him before his departure: he would earn a basic salary of Dh550, but would likely receive on average Dh900 every month, counting overtime. Accommodation and transportation to the work site would be provided by the company to which he was assigned.
“My wife was against me leaving, but we really needed the money if our family was to survive,” says Vinayagam, who did not study formally beyond the 5th grade. “My father used to go dig water wells when I was a boy and his sacrifice helped me own a plot of land. I reasoned with my wife that I had to go and build towers to help our children grow into educated adults.”
Although construction-site workers in India are paid an average daily wage of Rs400 (Dhs30), Vinayagam says he never managed to earn more than Rs5,000 (Dhs380) in a month in his homeland.
He repaid the agent’s fee and loan after six months on the job in Dubai.
*********************************************
Vinayagam took a series of smaller loans from several moneylenders at lower interest rates and declared himself free of debt in 2007, two years after he arrived in Dubai.
He leaves his accommodations, which are in a labour camp, at 6am, and returns to the room he shares with five others at 7pm. He works as a building cleaner, and sweeps, mops and dusts the same floors and stairways every day. On returning to his room, he and his roommates team up to cook the evening’s meal of lentils and rice and the following day’s lunch, which is usually Indian flatbreads and a fried vegetable. Vinayagam works on Friday mornings, since the overtime increases his income, and sometimes goes to Bur Dubai’s bazaar to meet friends.
“I prefer it this way. If I had more free time, I would miss the family,” he says. On receiving his monthly salary, which comes in cash, he wires Dh700 to his wife through UAE Exchange. In turn, she spends about Rs4,000 (Dhs300) on household-related expenses and deposits the remainder in a local bank account.
Although he was eligible to visit home after working for his company for two years, Vinayagam opted to forego his first earned holiday, which included an air ticket paid for by his employer. Instead, he worked at securing a transfer from his company’s construction division to its cleaning department. The decision paid off.
“As a cleaner, even though my salary remains the same, I come into contact with many kind people who give me tips, and these tips add up to around Dhs200 every month,” he says. “It sorts out my phone and food expenses.”
When Vinayagam returned to India for a holiday, after working for three years in Dubai, one of his daughters, Bharani, refused to speak with him for a month. “She was upset that I hadn’t visited them,” he says, eyes tearing.
However, he was able to stay with his family for four months during that trip. He managed to raise the level of his house’s ground floor, which will help prevent flooding during the rainy season, replaced the thatched roof with one made of concrete and built an indoor bathroom. The improvements cost him Rs100,000 (Dhs7,540), but he saved on labour charges by doing the construction himself.
“From Dubai, I brought home two saris and a mobile phone for my wife and a gold necklace and earrings totalling 40 grams in weight for my daughters,” he says. “That’s all I could afford.”
The family has taken a Rs20,000 (Dhs1,510) bank loan against the gold to enrol Bharani, 8, and her brother, Mohan Ram, 6, in a private school that teaches in English. The poor usually cannot afford such an extravagance, but these institutions are seen as a sign of social progress and Vinayagam and his wife hope sending the children to the school will give them a competitive edge when they attend university.
The children are a handful for their 29-year-old mother, Lakshmi, who is raising them without any assistance from her husband’s family. Such neglect from her in-laws is uncommon in Indian society, which encourages a joint family structure when it comes to support, especially when the man of the house is away. However, infighting within the family has resulted in her living alone in her house, whose one room must function as a bedroom, kitchen and living room. A single steel cupboard is used as a wardrobe for the family’s clothing, and the children’s new school bags lie on the floor beneath a green plastic chair.
Lakshmi works at a factory that assembles parts for scooters and mopeds, and is paid a monthly wage of Rs2,000 (Dh150).
“From getting the children ready for school, to working, cooking in the evening and sorting out their homework, it’s exhausting. I wish he was here,” she says of her husband as the children run around their empty yard and play with an adopted mongrel called Tiger.
Lakshmi watches proudly as Bharani rushes into the front door and displays her newly acquired English skills. Her school, which is a 15-minute bus ride away from their village, has sparked a fascination with the English language that spills into the family home; the siblings now insist on watching Western cartoons on television.
“It’s true that the only reason we can afford to pay for her and Mohan’s education in a private school is because Vinayagam earns in Dubai,” she says. “But only time will tell if it’s worth the separation,” she adds after a long pause.
With two daughters and a young son, Lakshmi says her greatest fear comes at night, when inebriated men sometimes walk by her home.
“Nothing has happened. But not having a man in the house is an unsafe scenario and I am scared for my older daughter, especially if she goes out alone,” Lakshmi says of 13-year-old Neela. “I would rather have Vinayagam back and live on the little we can earn,” she adds firmly.
When he hears Lakshmi’s comments, KV Shamsudheen is pleasantly surprised. The chairman of the UAE–based Pravasi Bandhu Welfare Trust, an organisation dedicated to assisting troubled lower- and middle-income non-resident Indians (NRIs), Mr Shamsudheen is well known for the financial planning and guidance seminars he holds in the Gulf region and India for unskilled NRIs and their dependents.
“I’m heartened to know there are some families who are still emotionally attached to their men,” he says upon his return from a recent trip to India, where he conducted five workshops for the dependents of NRIs in Kerala’s Chavakkad and Thirur districts.
Mr Shamsudheen has thus far conducted 170 such workshops, and is fully aware of the enormous financial gains Indian families enjoy by sending their men abroad to work. His worry is what is done with the money, and his goal is to prevent those working abroad from becoming victims of unrealistic demands and expectations.
“There is no doubt that thousands of families have raised their standard of living through their Gulf workers. Better homes, better education, better food and ultimately a better life,” he says. “But, my only concern is in two aspects. The first is, can they sustain the standard of living they are accustomed to when the Gulf earner returns to India? The second is, do the families know of the men’s hardships?”
Mr Shamsudheen’s new mission of directly addressing dependents in India – and bringing about a change in the consumer culture that prevails because of an assumption that the workers are nothing but money machines – seems to be paying off.
Over the summer he reached out to more than 300 families through his India-based workshops. The majority of the attendees were women, and most of them told Mr Shamsudheen that their husbands or sons in the Gulf had instructed them to attend his presentation. Although the women listened intently at the sessions, he was disappointed at their overall lack of curiosity about the lives and lifestyles of their husbands and sons overseas.
“As long as the gold and the electronics come in, many of the families I speak with don’t seem to care if their breadwinners sleep or eat. And the demands of Indian society are often very unreasonable, particularly when it comes to spending during festivals and celebrations,” he says.
Indian weddings, for example, are extravagant episodes even for the poor, whose lives and savings are affected by the pressures of hosting a wedding feast for hundreds of guests. Jewellery, trousseau and dowry expenses vary from one community to another, but largely remain a core fixture of nuptials. In addition, most Indians adhere to tradition and observe many festivals throughout the year and partake in rituals and ceremonies that celebrate births, mourn deaths and mark the milestones in between. And all of this takes – you guessed it – money.
It was the astronomical debt resulting from a sister’s wedding that prompted an 18-year-old Saravanan Vedhagiri to apply for a position in Dubai’s growing hospitality sector in 2004. The monthly salary of Rs3,000 (Dhs230) he was earning in India as the caretaker of a corporate guesthouse could have never repaid the Rs200,000 (Dhs15,100) loan the family took out to pay for the event.
“My father was in between jobs and there was no steady income other than mine. I also had a younger brother, and we had to find a way out to repay the loan,” he says.
Mr Vedhagiri, who like Vinayagam is also from Tamil Nadu, says that he was the first man from his small village of 600 to seek work abroad. Most of the other families in Nemendham are landowners who grow rice in the surrounding area on land they own, but Mr Vedhagiri’s family’s sole asset is a two-room house on a plot measuring 1,200 sq ft.
“Our kitchen used to be outside,” he says with a coy smile.
Through the network of a benefactor, he found a job in Dubai with the Grand Hyatt’s housekeeping department. “I was fortunate in that I didn’t have to pay any agent fee,” he says.
Thinking of the future, Mr Vedhagiri decided to skip the trip home he was entitled to after a year on the job and instead began cross-training in the hotel’s food and beverage department. After two years in housekeeping, Mr Vedhagiri began work as a waiter in the hotel’s café, Panini, where he worked for 18 months. The 24-year-old now works as a senior waiter in the hotel’s Al Nakheel Lounge.
Though he is uncomfortable discussing the specifics of his salary, Mr Vedhagiri proudly reels off his family’s acquisitions since the dirhams started pouring in. Although he does not send home a fixed amount each month, the family takes comfort in the security of his presence in Dubai and has been able to make improvements to their home that would otherwise remain a distant dream.
“The wedding debt was cleared in two years, and the family home has been extended to include a kitchen inside,” he says. “We’ve also renovated the bathroom and tiled the floors. I bought my father a moped worth Rs45,000 (Dhs3,400), lent my parents Rs200,000 (Dhs15,100) a year ago, and also invested in land worth Rs300,000 (Dhs22,600).
“I came away at a young age, and being single, I don’t face the same issues as a separated married man,” Mr Vedhagiri says. “Of course, I feel homesick, especially when I’m unwell, but working in Dubai in a 5-star hotel has had more than financial benefits.”
For example, if and when Mr Vedhagiri, who has never been to university, wishes to return to India, the experience he has gained working in a 5-star hotel will likely push his CV to the top of a prospective employer’s candidate file.
“I really think I have one of the best-case scenarios in terms of my job and living situation,” he says.
He now visits his family on an annual basis, staying in the home he has furnished with a DVD player, television and ceiling fans. His next goal is to install an air conditioner in the living room, which he believes will be a first for Nemendham.
Asked if he feels any undue financial pressure from his relatives, Mr Vedhagiri answers quickly. “I’ve heard stories from my friends about extremely demanding families. Although mine isn’t unreasonable, the financial and material expectations rise with every year that I work here,” he says tactfully.
Like most employees in the UAE hospitality sector, Mr Vedhagiri does not have to pay for accommodation or the majority of his meals. His salary is deposited into a Dubai bank and he sends home bulk amounts of money only when it is asked for, which he says is usually once a quarter.
“I don’t question the need, the amount or ask for the details on the spending,” he says flatly.
According to Mr Shamsudheen, a lack of communication and accountability between UAE-based breadwinners and their families back home are the main reasons for the financial misery many NRIs encounter.
“If you advise the men to ask their families to rein in the expenses, they are unable to,” says Mr Shamsudheen. Money, as he has observed, serves an appeasing role, and many of the workers he has advised use it to make up for their physical absence.
“It’s the paradox of sacrificing one person to save five. And we can debate it endlessly,” he says.
The key to surviving separation from one’s family, according to Dubai-based 22-year-old Om Prakash Menaria, a cook from the Udaipur district in Rajasthan, is to ensure that wives have the support of an extended family and that male workers in the Gulf have ample opportunity to socialise with others hailing from their villages or communities. Mr Menaria, who has worked for an Indian family in Dubai since moving to the emirate in 2006, insists on living with distant cousins in Bur Dubai.
His family owns 25 acres of land in Rajasthan, on which they grow pulse grains, which are sold to a fixed-price government outlet in Udaipur. Two years ago they achieved what he calls a “bumper crop” of 100 quintals that brought in about Rs100,000 (Dhs7,550). However, it was a rare year of agricultural celebration, as monsoons – and consequently, harvests – remain unpredictable. He is concerned about this year’s yield, as his state government recently declared a drought in 26 districts, including Udaipur.
“I moved to Dubai because there were no opportunities in Udaipur,” he explains. Mr Menaria is a high-school graduate, but says he has friends with undergraduate degrees who cannot find jobs in India.
In Rundera, his home village, and the surrounding region, families whose primary breadwinners are based in the UAE live in brick homes with brightly coloured exteriors, iron gates and modern amenities such as indoor toilets, a television set in every room and more mobile phones than family members; people forced to get by without such largesse live in homes that are are grey and bleak.
After a feast in the family home during a visit to Rundera last year, Mr Menaria explains the changes brought about through his Dubai earnings. “We’ve added a hall, an extra room and two toilets that are built Dubai-style,” he says, opening the bathroom door and revealing a western-style commode that has replaced their traditional hole-in-the-ground arrangement.
“Our community is referred to as the “Maharaj”, and the men who move out take up jobs as cooks in vegetarian families mostly from the states of Gujarat and Rajasthan,” he explains when asked how he ended up as a cook with a Gujarati family in Dubai.
He was sponsored by the family to work for a monthly salary of Dh1,000 and accommodation. Mr Menaria doesn’t have a bank account, but normally sends about Rs40,000 (Dhs3,000) to his family in India – his parents and wife, a grandfather, two younger brothers and a 11-month-old daughter – every four months. Sometimes, though, he is called uposn to send money for special occasions or emergencies.
“Our community spends a lot on rituals and festivities,” he says. “Even when there’s a death, we have to feed the entire village as part of the funeral rituals,” he explains, adding that such expenses can cost as much as Rs100,000 (Dhs7,540).
Earlier this year Mr Menaria decided to get a driver’s licence in a bid to move away from household chores and responsibilities and work for a private company. He spent Dh4,500 and passed the driving test on his third attempt. Since then he has been driving his sponsor’s car and now earns Dh2,000 a month.
When asked if he could pass the “Shamsudheen Test” and maintain his family’s current lifestyle should he have to return home, Mr Menaria responds without missing a beat.
“No. There will be cost cuts across every level. We now have six mobile phones and a landline. I will have to get rid of five phones. Out of three television sets, two will go. We also have a car, which we will not be able to maintain and fill up with petrol. And most importantly, I certainly can’t think of saving for my daughter’s education.”
Maintaining the family’s existing standard of living costs about Rs10,000 (Dhs750) every month, which he says would be inconceivable if there was no “Gulf worker” to fund it.
Mr Shamsudheen nods all too knowingly when asked about the scenario of drastic downsizing when the dirhams start dwindling, and has been endeavouring to create a culture of saving among the dependent families. He is spurred by the results of a 2002 survey conducted by his organisation that revealed that only 2 per cent of lower- and middle-class Indian families save a portion of their remittance money. As a result, when primary breadwinners retire and return to their native towns and villages the financial impact can be devastating.
“Families have to learn how to take smart decisions, such as spending less on clothes that will never be worn again, trimming guest lists and compulsorily putting away funds for a rainy day,” he says. “All of these unsung heroes sweat and bleed for their families. They avoid the Dh1 tea so that their son can buy a Rs10 Pepsi. I’ve seen so many instances of self-sacrifice and every time the excuse is: Let the family be happy,” he says.
However, families such as Vinayagam’s, whose situations have greatly improved by his moving to the Gulf, are caught in a quandary of living through long-distance relationships to achieve long-term aspirations.
“When I ask Vinayagam about his daily life, he asks to speak with the children,” says his wife, Lakshmi. “I know it’s not easy on him. And it’s not easy on me. But I believe our children will have an easier life when they grow up and I only hope they realise the sacrifices of their parents, especially their father.”
The National
Vinita Bharadwaj
Last Updated: September 12. 2009 2:01AM UAE / September 11. 2009 10:01PM GMT
Most foreign workers come to the UAE to not only make money for themselves, but to support a network of family, friends and others back home. Vinita Bharadwaj reports from India and Dubai on those who sacrifice everything for financial freedom
Vinayagam insists on keeping his family name to himself, because the fear of losing his job is always on his mind.
“I don’t want any trouble from anywhere. I need this simple job, as it has made life for my family better,” says the 35-year-old cleaner, who has lived and worked in Dubai since 2005. Like many unskilled workers from South Asia, the round-faced Vinayagam, who refused to be photographed – again, the fear – arrived in the UAE in pursuit of a dream.
Vinayagam left India two years after the birth of his only son. The boy joined Vinayagam’s two daughters and wife, Lakshmi, in a tiny one-room hut. The house had no bathroom or sanitation facilities and the family of five was surviving on a monthly income of Rs2,000 (Dh150).
Looking to better his lot in life, Vinayagam paid an agent in India the huge sum of Rs35,000 (Dh2,640) to land a job with a Dubai-based construction firm. With no savings to pay the agent’s fee, he pledged the 1,350 sq ft plot of land he owned and secured a loan of Rs48,300 from an illegal moneylender in the Indian state of Tamil Nadu, Vinayagam’s native region.
“The agent’s fee was actually Rs70,000,” he explains. “My land secured me Rs60,000, but the moneylender held back three months’ interest at the rate of Rs3,900 per month. I could pay only half the amount with the loan and had to repay the rest in instalments after coming to Dubai. I gave Rs10,000 to my wife, Rs3,000 to my parents and landed in Dubai with Rs300 (Dhs23) in my pocket.”
Vinayagam’s job profile and salary details were clearly explained to him before his departure: he would earn a basic salary of Dh550, but would likely receive on average Dh900 every month, counting overtime. Accommodation and transportation to the work site would be provided by the company to which he was assigned.
“My wife was against me leaving, but we really needed the money if our family was to survive,” says Vinayagam, who did not study formally beyond the 5th grade. “My father used to go dig water wells when I was a boy and his sacrifice helped me own a plot of land. I reasoned with my wife that I had to go and build towers to help our children grow into educated adults.”
Although construction-site workers in India are paid an average daily wage of Rs400 (Dhs30), Vinayagam says he never managed to earn more than Rs5,000 (Dhs380) in a month in his homeland.
He repaid the agent’s fee and loan after six months on the job in Dubai.
*********************************************
Vinayagam took a series of smaller loans from several moneylenders at lower interest rates and declared himself free of debt in 2007, two years after he arrived in Dubai.
He leaves his accommodations, which are in a labour camp, at 6am, and returns to the room he shares with five others at 7pm. He works as a building cleaner, and sweeps, mops and dusts the same floors and stairways every day. On returning to his room, he and his roommates team up to cook the evening’s meal of lentils and rice and the following day’s lunch, which is usually Indian flatbreads and a fried vegetable. Vinayagam works on Friday mornings, since the overtime increases his income, and sometimes goes to Bur Dubai’s bazaar to meet friends.
“I prefer it this way. If I had more free time, I would miss the family,” he says. On receiving his monthly salary, which comes in cash, he wires Dh700 to his wife through UAE Exchange. In turn, she spends about Rs4,000 (Dhs300) on household-related expenses and deposits the remainder in a local bank account.
Although he was eligible to visit home after working for his company for two years, Vinayagam opted to forego his first earned holiday, which included an air ticket paid for by his employer. Instead, he worked at securing a transfer from his company’s construction division to its cleaning department. The decision paid off.
“As a cleaner, even though my salary remains the same, I come into contact with many kind people who give me tips, and these tips add up to around Dhs200 every month,” he says. “It sorts out my phone and food expenses.”
When Vinayagam returned to India for a holiday, after working for three years in Dubai, one of his daughters, Bharani, refused to speak with him for a month. “She was upset that I hadn’t visited them,” he says, eyes tearing.
However, he was able to stay with his family for four months during that trip. He managed to raise the level of his house’s ground floor, which will help prevent flooding during the rainy season, replaced the thatched roof with one made of concrete and built an indoor bathroom. The improvements cost him Rs100,000 (Dhs7,540), but he saved on labour charges by doing the construction himself.
“From Dubai, I brought home two saris and a mobile phone for my wife and a gold necklace and earrings totalling 40 grams in weight for my daughters,” he says. “That’s all I could afford.”
The family has taken a Rs20,000 (Dhs1,510) bank loan against the gold to enrol Bharani, 8, and her brother, Mohan Ram, 6, in a private school that teaches in English. The poor usually cannot afford such an extravagance, but these institutions are seen as a sign of social progress and Vinayagam and his wife hope sending the children to the school will give them a competitive edge when they attend university.
The children are a handful for their 29-year-old mother, Lakshmi, who is raising them without any assistance from her husband’s family. Such neglect from her in-laws is uncommon in Indian society, which encourages a joint family structure when it comes to support, especially when the man of the house is away. However, infighting within the family has resulted in her living alone in her house, whose one room must function as a bedroom, kitchen and living room. A single steel cupboard is used as a wardrobe for the family’s clothing, and the children’s new school bags lie on the floor beneath a green plastic chair.
Lakshmi works at a factory that assembles parts for scooters and mopeds, and is paid a monthly wage of Rs2,000 (Dh150).
“From getting the children ready for school, to working, cooking in the evening and sorting out their homework, it’s exhausting. I wish he was here,” she says of her husband as the children run around their empty yard and play with an adopted mongrel called Tiger.
Lakshmi watches proudly as Bharani rushes into the front door and displays her newly acquired English skills. Her school, which is a 15-minute bus ride away from their village, has sparked a fascination with the English language that spills into the family home; the siblings now insist on watching Western cartoons on television.
“It’s true that the only reason we can afford to pay for her and Mohan’s education in a private school is because Vinayagam earns in Dubai,” she says. “But only time will tell if it’s worth the separation,” she adds after a long pause.
With two daughters and a young son, Lakshmi says her greatest fear comes at night, when inebriated men sometimes walk by her home.
“Nothing has happened. But not having a man in the house is an unsafe scenario and I am scared for my older daughter, especially if she goes out alone,” Lakshmi says of 13-year-old Neela. “I would rather have Vinayagam back and live on the little we can earn,” she adds firmly.
When he hears Lakshmi’s comments, KV Shamsudheen is pleasantly surprised. The chairman of the UAE–based Pravasi Bandhu Welfare Trust, an organisation dedicated to assisting troubled lower- and middle-income non-resident Indians (NRIs), Mr Shamsudheen is well known for the financial planning and guidance seminars he holds in the Gulf region and India for unskilled NRIs and their dependents.
“I’m heartened to know there are some families who are still emotionally attached to their men,” he says upon his return from a recent trip to India, where he conducted five workshops for the dependents of NRIs in Kerala’s Chavakkad and Thirur districts.
Mr Shamsudheen has thus far conducted 170 such workshops, and is fully aware of the enormous financial gains Indian families enjoy by sending their men abroad to work. His worry is what is done with the money, and his goal is to prevent those working abroad from becoming victims of unrealistic demands and expectations.
“There is no doubt that thousands of families have raised their standard of living through their Gulf workers. Better homes, better education, better food and ultimately a better life,” he says. “But, my only concern is in two aspects. The first is, can they sustain the standard of living they are accustomed to when the Gulf earner returns to India? The second is, do the families know of the men’s hardships?”
Mr Shamsudheen’s new mission of directly addressing dependents in India – and bringing about a change in the consumer culture that prevails because of an assumption that the workers are nothing but money machines – seems to be paying off.
Over the summer he reached out to more than 300 families through his India-based workshops. The majority of the attendees were women, and most of them told Mr Shamsudheen that their husbands or sons in the Gulf had instructed them to attend his presentation. Although the women listened intently at the sessions, he was disappointed at their overall lack of curiosity about the lives and lifestyles of their husbands and sons overseas.
“As long as the gold and the electronics come in, many of the families I speak with don’t seem to care if their breadwinners sleep or eat. And the demands of Indian society are often very unreasonable, particularly when it comes to spending during festivals and celebrations,” he says.
Indian weddings, for example, are extravagant episodes even for the poor, whose lives and savings are affected by the pressures of hosting a wedding feast for hundreds of guests. Jewellery, trousseau and dowry expenses vary from one community to another, but largely remain a core fixture of nuptials. In addition, most Indians adhere to tradition and observe many festivals throughout the year and partake in rituals and ceremonies that celebrate births, mourn deaths and mark the milestones in between. And all of this takes – you guessed it – money.
It was the astronomical debt resulting from a sister’s wedding that prompted an 18-year-old Saravanan Vedhagiri to apply for a position in Dubai’s growing hospitality sector in 2004. The monthly salary of Rs3,000 (Dhs230) he was earning in India as the caretaker of a corporate guesthouse could have never repaid the Rs200,000 (Dhs15,100) loan the family took out to pay for the event.
“My father was in between jobs and there was no steady income other than mine. I also had a younger brother, and we had to find a way out to repay the loan,” he says.
Mr Vedhagiri, who like Vinayagam is also from Tamil Nadu, says that he was the first man from his small village of 600 to seek work abroad. Most of the other families in Nemendham are landowners who grow rice in the surrounding area on land they own, but Mr Vedhagiri’s family’s sole asset is a two-room house on a plot measuring 1,200 sq ft.
“Our kitchen used to be outside,” he says with a coy smile.
Through the network of a benefactor, he found a job in Dubai with the Grand Hyatt’s housekeeping department. “I was fortunate in that I didn’t have to pay any agent fee,” he says.
Thinking of the future, Mr Vedhagiri decided to skip the trip home he was entitled to after a year on the job and instead began cross-training in the hotel’s food and beverage department. After two years in housekeeping, Mr Vedhagiri began work as a waiter in the hotel’s café, Panini, where he worked for 18 months. The 24-year-old now works as a senior waiter in the hotel’s Al Nakheel Lounge.
Though he is uncomfortable discussing the specifics of his salary, Mr Vedhagiri proudly reels off his family’s acquisitions since the dirhams started pouring in. Although he does not send home a fixed amount each month, the family takes comfort in the security of his presence in Dubai and has been able to make improvements to their home that would otherwise remain a distant dream.
“The wedding debt was cleared in two years, and the family home has been extended to include a kitchen inside,” he says. “We’ve also renovated the bathroom and tiled the floors. I bought my father a moped worth Rs45,000 (Dhs3,400), lent my parents Rs200,000 (Dhs15,100) a year ago, and also invested in land worth Rs300,000 (Dhs22,600).
“I came away at a young age, and being single, I don’t face the same issues as a separated married man,” Mr Vedhagiri says. “Of course, I feel homesick, especially when I’m unwell, but working in Dubai in a 5-star hotel has had more than financial benefits.”
For example, if and when Mr Vedhagiri, who has never been to university, wishes to return to India, the experience he has gained working in a 5-star hotel will likely push his CV to the top of a prospective employer’s candidate file.
“I really think I have one of the best-case scenarios in terms of my job and living situation,” he says.
He now visits his family on an annual basis, staying in the home he has furnished with a DVD player, television and ceiling fans. His next goal is to install an air conditioner in the living room, which he believes will be a first for Nemendham.
Asked if he feels any undue financial pressure from his relatives, Mr Vedhagiri answers quickly. “I’ve heard stories from my friends about extremely demanding families. Although mine isn’t unreasonable, the financial and material expectations rise with every year that I work here,” he says tactfully.
Like most employees in the UAE hospitality sector, Mr Vedhagiri does not have to pay for accommodation or the majority of his meals. His salary is deposited into a Dubai bank and he sends home bulk amounts of money only when it is asked for, which he says is usually once a quarter.
“I don’t question the need, the amount or ask for the details on the spending,” he says flatly.
According to Mr Shamsudheen, a lack of communication and accountability between UAE-based breadwinners and their families back home are the main reasons for the financial misery many NRIs encounter.
“If you advise the men to ask their families to rein in the expenses, they are unable to,” says Mr Shamsudheen. Money, as he has observed, serves an appeasing role, and many of the workers he has advised use it to make up for their physical absence.
“It’s the paradox of sacrificing one person to save five. And we can debate it endlessly,” he says.
The key to surviving separation from one’s family, according to Dubai-based 22-year-old Om Prakash Menaria, a cook from the Udaipur district in Rajasthan, is to ensure that wives have the support of an extended family and that male workers in the Gulf have ample opportunity to socialise with others hailing from their villages or communities. Mr Menaria, who has worked for an Indian family in Dubai since moving to the emirate in 2006, insists on living with distant cousins in Bur Dubai.
His family owns 25 acres of land in Rajasthan, on which they grow pulse grains, which are sold to a fixed-price government outlet in Udaipur. Two years ago they achieved what he calls a “bumper crop” of 100 quintals that brought in about Rs100,000 (Dhs7,550). However, it was a rare year of agricultural celebration, as monsoons – and consequently, harvests – remain unpredictable. He is concerned about this year’s yield, as his state government recently declared a drought in 26 districts, including Udaipur.
“I moved to Dubai because there were no opportunities in Udaipur,” he explains. Mr Menaria is a high-school graduate, but says he has friends with undergraduate degrees who cannot find jobs in India.
In Rundera, his home village, and the surrounding region, families whose primary breadwinners are based in the UAE live in brick homes with brightly coloured exteriors, iron gates and modern amenities such as indoor toilets, a television set in every room and more mobile phones than family members; people forced to get by without such largesse live in homes that are are grey and bleak.
After a feast in the family home during a visit to Rundera last year, Mr Menaria explains the changes brought about through his Dubai earnings. “We’ve added a hall, an extra room and two toilets that are built Dubai-style,” he says, opening the bathroom door and revealing a western-style commode that has replaced their traditional hole-in-the-ground arrangement.
“Our community is referred to as the “Maharaj”, and the men who move out take up jobs as cooks in vegetarian families mostly from the states of Gujarat and Rajasthan,” he explains when asked how he ended up as a cook with a Gujarati family in Dubai.
He was sponsored by the family to work for a monthly salary of Dh1,000 and accommodation. Mr Menaria doesn’t have a bank account, but normally sends about Rs40,000 (Dhs3,000) to his family in India – his parents and wife, a grandfather, two younger brothers and a 11-month-old daughter – every four months. Sometimes, though, he is called uposn to send money for special occasions or emergencies.
“Our community spends a lot on rituals and festivities,” he says. “Even when there’s a death, we have to feed the entire village as part of the funeral rituals,” he explains, adding that such expenses can cost as much as Rs100,000 (Dhs7,540).
Earlier this year Mr Menaria decided to get a driver’s licence in a bid to move away from household chores and responsibilities and work for a private company. He spent Dh4,500 and passed the driving test on his third attempt. Since then he has been driving his sponsor’s car and now earns Dh2,000 a month.
When asked if he could pass the “Shamsudheen Test” and maintain his family’s current lifestyle should he have to return home, Mr Menaria responds without missing a beat.
“No. There will be cost cuts across every level. We now have six mobile phones and a landline. I will have to get rid of five phones. Out of three television sets, two will go. We also have a car, which we will not be able to maintain and fill up with petrol. And most importantly, I certainly can’t think of saving for my daughter’s education.”
Maintaining the family’s existing standard of living costs about Rs10,000 (Dhs750) every month, which he says would be inconceivable if there was no “Gulf worker” to fund it.
Mr Shamsudheen nods all too knowingly when asked about the scenario of drastic downsizing when the dirhams start dwindling, and has been endeavouring to create a culture of saving among the dependent families. He is spurred by the results of a 2002 survey conducted by his organisation that revealed that only 2 per cent of lower- and middle-class Indian families save a portion of their remittance money. As a result, when primary breadwinners retire and return to their native towns and villages the financial impact can be devastating.
“Families have to learn how to take smart decisions, such as spending less on clothes that will never be worn again, trimming guest lists and compulsorily putting away funds for a rainy day,” he says. “All of these unsung heroes sweat and bleed for their families. They avoid the Dh1 tea so that their son can buy a Rs10 Pepsi. I’ve seen so many instances of self-sacrifice and every time the excuse is: Let the family be happy,” he says.
However, families such as Vinayagam’s, whose situations have greatly improved by his moving to the Gulf, are caught in a quandary of living through long-distance relationships to achieve long-term aspirations.
“When I ask Vinayagam about his daily life, he asks to speak with the children,” says his wife, Lakshmi. “I know it’s not easy on him. And it’s not easy on me. But I believe our children will have an easier life when they grow up and I only hope they realise the sacrifices of their parents, especially their father.”
Sunday, August 23, 2009
Waste not, want not for food
THE NATIONAL
LETTER TO THE EDITOR
23-08-09
Ramadan is the time that many give charity to the needy. Unfortunately, this is also the time when we are wasting so much food every day. Those who are working in the municipality are saying the rubbish bins are full of wasted food. When we waste valuable food, realise one fact: in our country there are thousands living without required food, and working in the extreme heat.
I have seen workers who reach the work site at 7.00am with some rice or roti and a few spoonfuls of lentils that hang in a plastic bag, exposed to the heat until they eat at the mid-day break. One can imagine the condition of that food when they eat! Before throwing away food, let us remember these poor people. If some one could collect the excess food in refrigerated vans and supply it to the labour camps, it would be a great help.
K V Shamsudheen, Sharjah
LETTER TO THE EDITOR
23-08-09
Ramadan is the time that many give charity to the needy. Unfortunately, this is also the time when we are wasting so much food every day. Those who are working in the municipality are saying the rubbish bins are full of wasted food. When we waste valuable food, realise one fact: in our country there are thousands living without required food, and working in the extreme heat.
I have seen workers who reach the work site at 7.00am with some rice or roti and a few spoonfuls of lentils that hang in a plastic bag, exposed to the heat until they eat at the mid-day break. One can imagine the condition of that food when they eat! Before throwing away food, let us remember these poor people. If some one could collect the excess food in refrigerated vans and supply it to the labour camps, it would be a great help.
K V Shamsudheen, Sharjah
Monday, August 17, 2009
ONLINE CAMPAIGN FOR FOREIGN FLIGHTS
Kozhikode: Non-Resident Indians (NRIs) living in the Gulf nations have launched an online signature campaign requesting Union Minister for Civil Aviation Praful Patel to permit foreign airlines to operate services to and from the Calicut airport at Karipur.
Hundreds of people have responded to the petition posted by the UAE-based Pravasi Bandu Welfare Trust on www.petitiononline.com, a web site hosting petitions for responsible public advocacy free.
“The petition was posted at 3 p.m. on Saturday. We are receiving new signatures each minute,” K.V. Shamsudheen, chairman of the trust, said. He said the airport was made an international airport on February 2, 2006. However, no steps had been initiated to improve infrastructure.
The Airports Authority of India had provided a lighting system for the airport’s runway for the first time in India on recommendations of the Directorate-General of Civil Aviation. The system had been in service for night operations since October 2003, Mr. Shamsudheen said.
A 15,000-sq.m international arrival terminal had been opened to passengers, similar to the modern, spacious international departure terminal that became operational on May 14, 2007. As many as 240 international flights operated from the airport a week. The annual number of international passengers was more than half a million, he said.
‘Cash cow’
The airport and its passengers had been a “cash cow” for Air India Express and Indian owing to the patronage of NRIs from the Gulf countries. So, these airlines decided that no other international airline companies should operate from the airport and share their profits.
Delayed flights and passenger abuse, both by airline and customs authorities, happened daily, Mr. Shamsudheen alleged.
Operators keen
Many foreign airlines, including budget ones, were eagerly waiting to operate services from the airport. The Centre had given permission for foreign airlines to land in Pune, Nagpur and Coimbatore airports, though these had only a few international passengers, flights and facilities.
He said the Union Ministry of Civil Aviation recently permitted Jet Airways to fly to a few Gulf destinations. But to protect the monopoly of Air India Express and Indian, the Ministry did not give the private airline permission to fly to the UAE and Saudi Arabia, which had the largest Keralite population.
Lower fares
The fear of Air India and Indian that competition and low airfare would affect their business made no sense, as a study by the trust found that lower fares made expatriates fly more often, and the airlines would flourish. “We also feel that competition will improve services and benefit end users in a big way,” Mr. Shamsudheen said.
Hundreds of people have responded to the petition posted by the UAE-based Pravasi Bandu Welfare Trust on www.petitiononline.com, a web site hosting petitions for responsible public advocacy free.
“The petition was posted at 3 p.m. on Saturday. We are receiving new signatures each minute,” K.V. Shamsudheen, chairman of the trust, said. He said the airport was made an international airport on February 2, 2006. However, no steps had been initiated to improve infrastructure.
The Airports Authority of India had provided a lighting system for the airport’s runway for the first time in India on recommendations of the Directorate-General of Civil Aviation. The system had been in service for night operations since October 2003, Mr. Shamsudheen said.
A 15,000-sq.m international arrival terminal had been opened to passengers, similar to the modern, spacious international departure terminal that became operational on May 14, 2007. As many as 240 international flights operated from the airport a week. The annual number of international passengers was more than half a million, he said.
‘Cash cow’
The airport and its passengers had been a “cash cow” for Air India Express and Indian owing to the patronage of NRIs from the Gulf countries. So, these airlines decided that no other international airline companies should operate from the airport and share their profits.
Delayed flights and passenger abuse, both by airline and customs authorities, happened daily, Mr. Shamsudheen alleged.
Operators keen
Many foreign airlines, including budget ones, were eagerly waiting to operate services from the airport. The Centre had given permission for foreign airlines to land in Pune, Nagpur and Coimbatore airports, though these had only a few international passengers, flights and facilities.
He said the Union Ministry of Civil Aviation recently permitted Jet Airways to fly to a few Gulf destinations. But to protect the monopoly of Air India Express and Indian, the Ministry did not give the private airline permission to fly to the UAE and Saudi Arabia, which had the largest Keralite population.
Lower fares
The fear of Air India and Indian that competition and low airfare would affect their business made no sense, as a study by the trust found that lower fares made expatriates fly more often, and the airlines would flourish. “We also feel that competition will improve services and benefit end users in a big way,” Mr. Shamsudheen said.
New tax regime lures NRIs to capital markets
www.incometaxinfo.com
Kochi , July 15
WILL the differential tax regime introduced in the Union Budget for banks and capital markets, result in the flight of $33,248 million of NRI bank deposits to new havens in the Indian capital markets?
Reflecting the view of the new generation of NRIs in the Gulf, Mr Jose Mathew, Chartered Accountant with PSI Middle East, told Business Line from Dubai: "There has been a sea change in the attitude of the NRIs away from the stability and security of bank deposits to the high, yet speculative returns of the capital markets. With a perceptible surge in numbers of the investing community in the Gulf, Barjeel Geojit Securities had to shift their operations to a bigger trading hall within the same premises."
Mr K.V. Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, based in Dubai was a lot more circumspect: "There has been a paradigm shift in the attitude of NRIs from bank deposits to capital market investments after the Budget. This could soon translate into affirmative inflows into the Indian capital markets. But it is going to be a slow process. The term deposits held in Indian banks will have to mature over the coming months and maybe years before the full impact of the shift in investment becomes evident."
Some stockbrokers felt that the new trend could bring greater liquidity to the Indian capital markets and even help alleviate the impact of the proposed turnover tax.
The NRI community though jubilant over the removal of long-term capital gains tax and steep reduction in the short-term capital gains tax is, however, deeply concerned over the imposition of income tax on NRI deposits. They are more averse to bureaucratic formalities such as the need for filing income tax returns on income from NRI bank deposits.
The Budget pronouncements have resulted in a corresponding surge in new accounts, which have been opened for capital market transactions as well as enquiries related to the capital markets and equity-based mutual funds among the Gulf NRIs. Almost 60 per cent of the NRI remittances come from the Gulf region.
Of these, 64 per cent are from an emerging affluent middle class, willing to explore new and innovative avenues, Mr Shamsudheen said. An online survey conducted by Pravasi Welfare Trust with a base of 1,00,000 NRIs has revealed the changing profile of NRI community seeking alternative investment avenues.
And the brokers in the country plan to capitalise on these changing NRI sentiment. Mr C.J. George, Managing Director of Geojit Securities, said: "The old generation of well entrenched NRIs who rose within foreign companies over the decades is over. The new breed of affluent, technically qualified and upwardly mobile NRIs have become a reality. They are more interested in the high returns of the capital markets and have no qualms in giving the low returns of bank deposits the go by. We will soon be launching an education campaign among these new converts to highlight the relatively low tax regime and immense opportunities in the Indian capital markets."
But people like Mr Jose Mathew need no convincing. "I have all along been investing in the Indian capital markets and the new tax regime will induce more people like me to shift their investments," he said. The banking community is also getting increasingly worried.
Mr A. Sethumadhavan, Chairman of South Indian Bank said, "The threat of a diversion from bank deposits to capital market may not be immediate. But it is real. The NRIs have a great sense of discomfort with Indian bureaucracy and some could even go to the extent of pre-closing their accounts in order to avoid filing returns."
Kochi , July 15
WILL the differential tax regime introduced in the Union Budget for banks and capital markets, result in the flight of $33,248 million of NRI bank deposits to new havens in the Indian capital markets?
Reflecting the view of the new generation of NRIs in the Gulf, Mr Jose Mathew, Chartered Accountant with PSI Middle East, told Business Line from Dubai: "There has been a sea change in the attitude of the NRIs away from the stability and security of bank deposits to the high, yet speculative returns of the capital markets. With a perceptible surge in numbers of the investing community in the Gulf, Barjeel Geojit Securities had to shift their operations to a bigger trading hall within the same premises."
Mr K.V. Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, based in Dubai was a lot more circumspect: "There has been a paradigm shift in the attitude of NRIs from bank deposits to capital market investments after the Budget. This could soon translate into affirmative inflows into the Indian capital markets. But it is going to be a slow process. The term deposits held in Indian banks will have to mature over the coming months and maybe years before the full impact of the shift in investment becomes evident."
Some stockbrokers felt that the new trend could bring greater liquidity to the Indian capital markets and even help alleviate the impact of the proposed turnover tax.
The NRI community though jubilant over the removal of long-term capital gains tax and steep reduction in the short-term capital gains tax is, however, deeply concerned over the imposition of income tax on NRI deposits. They are more averse to bureaucratic formalities such as the need for filing income tax returns on income from NRI bank deposits.
The Budget pronouncements have resulted in a corresponding surge in new accounts, which have been opened for capital market transactions as well as enquiries related to the capital markets and equity-based mutual funds among the Gulf NRIs. Almost 60 per cent of the NRI remittances come from the Gulf region.
Of these, 64 per cent are from an emerging affluent middle class, willing to explore new and innovative avenues, Mr Shamsudheen said. An online survey conducted by Pravasi Welfare Trust with a base of 1,00,000 NRIs has revealed the changing profile of NRI community seeking alternative investment avenues.
And the brokers in the country plan to capitalise on these changing NRI sentiment. Mr C.J. George, Managing Director of Geojit Securities, said: "The old generation of well entrenched NRIs who rose within foreign companies over the decades is over. The new breed of affluent, technically qualified and upwardly mobile NRIs have become a reality. They are more interested in the high returns of the capital markets and have no qualms in giving the low returns of bank deposits the go by. We will soon be launching an education campaign among these new converts to highlight the relatively low tax regime and immense opportunities in the Indian capital markets."
But people like Mr Jose Mathew need no convincing. "I have all along been investing in the Indian capital markets and the new tax regime will induce more people like me to shift their investments," he said. The banking community is also getting increasingly worried.
Mr A. Sethumadhavan, Chairman of South Indian Bank said, "The threat of a diversion from bank deposits to capital market may not be immediate. But it is real. The NRIs have a great sense of discomfort with Indian bureaucracy and some could even go to the extent of pre-closing their accounts in order to avoid filing returns."
Twilight trade in human traffic nets millions for gangmasters
Twilight trade in human traffic nets millions for gangmasters
by Conrad Egbert
Saturday, 03 September 2005
Last week in Qatar, 400 Indian and Nepalese construction workers made history by holding the first strike since this type of industrial action was legalised last year.
It was a major turning point in the relationship between employee and employer in the local construction sector, and has ramifications for the industry throughout the Gulf.
The strike was also significant in that it brought the issue of labour racketeering into the media spotlight.
Story continues below ↓
advertisement
And it prompted the Indian government to draw up a
blacklist of 11 recruitment agents operating in Qatar, banning them from hiring Indian nationals. A further 30 companies were put on a watch list.
Many of the workers who downed tools last week were recruited by agents operating in Nepal and India, who extorted thousands of dollars from them in fees for placing them in jobs.
The trade in human traffic within the Middle East’s construction sector is now big business — worth millions of
dollars to the unscrupulous agents who prey on vulnerable workers, often from the rural villages of southern India, Nepal and Pakistan.
Many of these hopefuls sell their possessions and take out personal loans in order to pay the gangmasters used by agencies to supply sites in the Gulf.
The Indian embassy in Qatar is currently investigating a racket involving at least six firms alleged to have extracted around US $350 000 from 275 construction labourers looking for work in the country.
Most recruitment agencies based in the Gulf have overseas offices in India. These use individual gangmasters to hire workers for them on a commission basis.
“It’s no secret that there are illegal recruitment agents operating in India,” said KV Shamsudheen, chairman of Pravasi Bandhu Trust, a welfare organisation based in Sharjah.
“It’s like a mafia that is run by individuals. And in some cases they’re even connected to legal recruitment agencies that are sanctioned by the central government.”
Shamsudheen runs awareness programs in Kerala to help
educate illiterate workers who are often deceived by recruiters into believing they will earn vast sums on the building sites of the region.
“They don’t realise that what they earn is what they will
be spending. There is no sense in coming to Dubai to earn AED600 because when you deduct the charges against their salaries, you’d see that they earn more back home.”
Recruitment agencies in India are required to be licensed by the central government to operate legally, but individual unlicensed recruiters often end up hiring labourers for these agencies through personal contacts and networks.
Last year the International Labour Organisation (ILO) based in New Delhi conducted a survey on forced labour worldwide.
According to the report, 260 000 workers in the MENA countries were classified as ‘forced labour’ and 88% of these were exploited for private economic reasons.
“One reason why this is happening is because most of the workers who are hired by these agents are illiterate and so they sign contracts that they can’t read,” said a recruitment agent based in Dubai.
“Every agent has a sub agent in all areas where labourers can be hired from. An agency based in the Gulf would have a branch back in India, which would have individual contacts in different states of the country.
“But what people should really be careful about are individuals who are just con men trying to make a quick buck. They go out pretending they have jobs to offer, charge the workers in bulk and then vanish with all the money,” he said.
The case of the 400 construction workers in Qatar may
have made headlines last week, but it could be just the tip of the iceberg.
by Conrad Egbert
Saturday, 03 September 2005
Last week in Qatar, 400 Indian and Nepalese construction workers made history by holding the first strike since this type of industrial action was legalised last year.
It was a major turning point in the relationship between employee and employer in the local construction sector, and has ramifications for the industry throughout the Gulf.
The strike was also significant in that it brought the issue of labour racketeering into the media spotlight.
Story continues below ↓
advertisement
And it prompted the Indian government to draw up a
blacklist of 11 recruitment agents operating in Qatar, banning them from hiring Indian nationals. A further 30 companies were put on a watch list.
Many of the workers who downed tools last week were recruited by agents operating in Nepal and India, who extorted thousands of dollars from them in fees for placing them in jobs.
The trade in human traffic within the Middle East’s construction sector is now big business — worth millions of
dollars to the unscrupulous agents who prey on vulnerable workers, often from the rural villages of southern India, Nepal and Pakistan.
Many of these hopefuls sell their possessions and take out personal loans in order to pay the gangmasters used by agencies to supply sites in the Gulf.
The Indian embassy in Qatar is currently investigating a racket involving at least six firms alleged to have extracted around US $350 000 from 275 construction labourers looking for work in the country.
Most recruitment agencies based in the Gulf have overseas offices in India. These use individual gangmasters to hire workers for them on a commission basis.
“It’s no secret that there are illegal recruitment agents operating in India,” said KV Shamsudheen, chairman of Pravasi Bandhu Trust, a welfare organisation based in Sharjah.
“It’s like a mafia that is run by individuals. And in some cases they’re even connected to legal recruitment agencies that are sanctioned by the central government.”
Shamsudheen runs awareness programs in Kerala to help
educate illiterate workers who are often deceived by recruiters into believing they will earn vast sums on the building sites of the region.
“They don’t realise that what they earn is what they will
be spending. There is no sense in coming to Dubai to earn AED600 because when you deduct the charges against their salaries, you’d see that they earn more back home.”
Recruitment agencies in India are required to be licensed by the central government to operate legally, but individual unlicensed recruiters often end up hiring labourers for these agencies through personal contacts and networks.
Last year the International Labour Organisation (ILO) based in New Delhi conducted a survey on forced labour worldwide.
According to the report, 260 000 workers in the MENA countries were classified as ‘forced labour’ and 88% of these were exploited for private economic reasons.
“One reason why this is happening is because most of the workers who are hired by these agents are illiterate and so they sign contracts that they can’t read,” said a recruitment agent based in Dubai.
“Every agent has a sub agent in all areas where labourers can be hired from. An agency based in the Gulf would have a branch back in India, which would have individual contacts in different states of the country.
“But what people should really be careful about are individuals who are just con men trying to make a quick buck. They go out pretending they have jobs to offer, charge the workers in bulk and then vanish with all the money,” he said.
The case of the 400 construction workers in Qatar may
have made headlines last week, but it could be just the tip of the iceberg.
Desperate labourers seek death on roads
By Sunita Menon, Staff Reporter
http://chatru.com/uae/index.php?topic=20461.0
mARCH 29, 2006
Dubai: Labourers desperate to make a fast buck are quite literally playing with their lives: they rush into speeding traffic on busy roads hoping their dependants will inherit the diya (blood money) if they are knocked down.
Following complaints about reckless pedestrians in certain areas in Dubai, Gulf News found that a handful of labourers were making a suicidal dash across the road, catching motorists unawares.
The labourers were seen crisscrossing the roads.
To understand what the labourers were up to, Gulf News tried to speak to the workers.
On being approached, all but one of the men fled.
Motiram, who was bold enough to reveal his story, said: "We are trying to get knocked down."
Motiram, an illegal Indian who is part of the floating labour population, added, "There is no point living in such a pathetic state. I had come here on a visit visa paying a large sum to an agent in India. I was unsuccessful in finding a good job and have been living hand-to-mouth for the last several months.
"The last time I spoke to my family was some three months ago."
Motiram said he learnt about the blood money rule from his colleagues while working as a daily wage earner.
"At first I was quite scared about getting knocked down by a vehicle. "I know only a couple of others who are attempting the same. I am desperate," he said.
Asked why he had not gone to the consulate and approached them for an emergency certificate, Motiram said: "I am ashamed to go back home empty-handed. I am already a burden for them. In order to repay the loan that I had taken for the visa, both my sisters are working as part-time maids in India. I am responsible for getting them in such a state of affairs," he said.
Motorists who spoke to Gulf News said they are often caught unawares by people jumping in front of their vehicles from nowhere. "It happened to me twice in a week near the Al Khaleej Centre. The labourers think of crossing the street no sooner than the traffic lights go green. It is frightening," said Reshma Khan, a Pakistani.
Philip Kurien, an Indian, said: "This thing goes on a lot in the busy Satwa street. I dread driving there especially in the evenings. I am sure they do that on purpose."
Umesh Patel, an Indian, said: "The men wait until the traffic signal turns green. It is so bizarre."
It is difficult 'to gauge the intention of people crossing the street'
Brigadier Mohammad Saif Al Zafein, director, Dubai Traffic Department, said it is very difficult to gauge the intention of people crossing the street.
"What is the evidence here? I do not think that something like this is taking place. How is anybody to conclude on the intention behind a man or woman crossing a road? When an accident takes place it is thoroughly investigated by the police and only then a conclusion is reached," he said.
K.V. Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, a UAE-based Indian organisation, said: "I have heard people talking about it. I have also come across people dashing across the street in peak traffic, in their desperation to get money.
"People taking such risks should know that they will end up disabled. We need to create awareness. It is a wrong idea that they have got, money cannot replace an individual."
http://chatru.com/uae/index.php?topic=20461.0
mARCH 29, 2006
Dubai: Labourers desperate to make a fast buck are quite literally playing with their lives: they rush into speeding traffic on busy roads hoping their dependants will inherit the diya (blood money) if they are knocked down.
Following complaints about reckless pedestrians in certain areas in Dubai, Gulf News found that a handful of labourers were making a suicidal dash across the road, catching motorists unawares.
The labourers were seen crisscrossing the roads.
To understand what the labourers were up to, Gulf News tried to speak to the workers.
On being approached, all but one of the men fled.
Motiram, who was bold enough to reveal his story, said: "We are trying to get knocked down."
Motiram, an illegal Indian who is part of the floating labour population, added, "There is no point living in such a pathetic state. I had come here on a visit visa paying a large sum to an agent in India. I was unsuccessful in finding a good job and have been living hand-to-mouth for the last several months.
"The last time I spoke to my family was some three months ago."
Motiram said he learnt about the blood money rule from his colleagues while working as a daily wage earner.
"At first I was quite scared about getting knocked down by a vehicle. "I know only a couple of others who are attempting the same. I am desperate," he said.
Asked why he had not gone to the consulate and approached them for an emergency certificate, Motiram said: "I am ashamed to go back home empty-handed. I am already a burden for them. In order to repay the loan that I had taken for the visa, both my sisters are working as part-time maids in India. I am responsible for getting them in such a state of affairs," he said.
Motorists who spoke to Gulf News said they are often caught unawares by people jumping in front of their vehicles from nowhere. "It happened to me twice in a week near the Al Khaleej Centre. The labourers think of crossing the street no sooner than the traffic lights go green. It is frightening," said Reshma Khan, a Pakistani.
Philip Kurien, an Indian, said: "This thing goes on a lot in the busy Satwa street. I dread driving there especially in the evenings. I am sure they do that on purpose."
Umesh Patel, an Indian, said: "The men wait until the traffic signal turns green. It is so bizarre."
It is difficult 'to gauge the intention of people crossing the street'
Brigadier Mohammad Saif Al Zafein, director, Dubai Traffic Department, said it is very difficult to gauge the intention of people crossing the street.
"What is the evidence here? I do not think that something like this is taking place. How is anybody to conclude on the intention behind a man or woman crossing a road? When an accident takes place it is thoroughly investigated by the police and only then a conclusion is reached," he said.
K.V. Shamsudheen, Chairman of the Pravasi Bandhu Welfare Trust, a UAE-based Indian organisation, said: "I have heard people talking about it. I have also come across people dashing across the street in peak traffic, in their desperation to get money.
"People taking such risks should know that they will end up disabled. We need to create awareness. It is a wrong idea that they have got, money cannot replace an individual."
A REPORT ON PRAVASI BANDHU ACTIVITIES IN JAPAN'S NEWS PAPER
天堂离棕榈岛很远
http://dycj.ynet.com/article.jsp?oid=40740290
本版新闻 _图片(12/31) 更正(12/31) 一个品牌的死亡(12/31) 金融笑话走俏美国(12/31) “考古”当代艺术(12/30) “矛盾”背后真实的巴菲特(12/30) GETTY年度体育图片(12/30) Fusion_Music，将传统民乐混搭为新鲜时尚(12/29) 戴爱群(12/29) 85岁登山狂人又上路(12/25)
◇字体：［大 中 小］ 发表评论 本版PDF 北青网 - 第一财经日报：罗敏 (08/05/29 10:47)
曾经被宣传为“世界第八大奇迹”的迪拜人造岛屿“棕榈岛”，如今正被一些先期入住的居民抱怨为“世界第八大错误”
酝酿成形一个梦想需要很多年，证明它不完美却轻而易举。在迪拜，人工围垦而成的“珠美拉棕榈岛”（The Palm Jumeirah）刚刚浮出水面，先期入住的人们就带来了不好的消息。酷热、拥挤和昂贵如今阴霾一般漂浮在这个水中胜地上方。这一切，一手推动棕榈岛建设的迪拜王室显然没有预想到。
将为迪拜延伸520公里海岸线的棕榈三岛，建成后将成为世界第三大人工岛屿。它被迪拜酋长称为“世界第八大奇迹”，早在上世纪90年代便已出现在当权者的脑海中。经过5年规划，2001年，迪拜人正式向蓝色海洋进军。
如今，无论在照片中，还是从空中俯瞰这三个树状的沙地及建筑其上的房屋，都能隐约感觉“世界第八大奇迹”的美妙壮观。2006年末，三岛中最小的珠美拉棕榈岛上部分别墅建成，一批“棕榈岛先锋”纷纷入住，吹起海风看起海浪来。然而，随着贝克汉姆买下此处一幢别墅的噱头变得乏味，4英里可达海滩的新鲜感逐渐凋零，生活在“第八大奇迹”的神话已显得不那么美好。现在，4000名居民正开始与阿拉伯海湾酷热的气候较劲。此处夏季最高温可达48摄氏度、湿度很高，远远超过蜂拥而至的居民原先的浪漫想象。
一年多前，一批英国人首先挥别他们日光萎靡的家乡，前来拥抱棕榈岛的灿烂光芒。紧接着是俄罗斯人，随后，是越来越多的伊朗富人。确实，棕榈岛有它处难企及的美好：“棕榈树叶”蜿蜒入海，清澈的海水轻轻盖上平坦的沙地，阳光充裕，寄生蟹和鱼类品种繁多，一周两次，海岸修饰如新。你只要远离尚在开发中、四年后才能正式投入运营的区域，这海洋中央的生活便难以让人置信地平和安宁。
它的尺寸、它的阳光也许是最吸引初来乍到者的地方。象征棕榈树的17片枝叶，每一片都有一里长，主干道则为八车道的汽车高速公路。目前，大约40家宾馆正在防浪堤上建设，岛屿以后还将进一步扩展。
但是，对于一年前从英国举家搬到一片“棕榈叶”上的豪华别墅的42岁策展人瑞切尔·瓦尔德斯（Rachael Wilds）来说，一切都不是她想象的模样。她花300万英镑购置的房产紧紧挨着邻居的房子，毗邻一块贫瘠、寸草不生的土地。“完全不是小册子上写的那样。”她不停抱怨，“在别墅区和青葱繁茂的热带花园之间，有一条巨大的鸿沟。我们完全被别墅的狭窄拥挤吓坏了。”
蓝色海岸上，价值数百万英镑的别墅拥挤在一起。47岁的金融顾问拉斐尔·卡纳斯（Raffaele Cannas）是2006年末拿到钥匙的第一批居民之一，然后，一批人来参观他的小屋，然后，“我不知道谁是第一个，但知道，大卫·詹姆斯（David James）挤到了我前面的位置上，安迪·科尔（Andy Cole）占领了后面的。”搬进去仅仅18个月的卡纳斯如今只想着离开搬到新西兰去。“营销很有力，把棕榈岛形容成‘世界第八大奇迹’。于是，人们的期待被掀上了天。但它并非如此。”
由于天气燥热，很多地方尚在建设中，棕榈岛的环境时常很糟。如果没有大量灌溉，草地便很快枯萎，岛上最高的树则是一些移动电话发射塔——打扮得像是棕榈树的样子。而且，使用中央空调的价格并不在当初的购买价内，如今每月空调费用可达800英镑，许多居民正在为此斗争。不断出现的问题，让一些人更热衷于将棕榈岛称为“第八大错误”，而非此前的“第八大奇迹”。
还有一些人觉得良心难安。在建造棕榈岛最紧张的时候，约4万名雇员每天工作，将9400万立方米沙子和700万吨石头变成这个“适合21世纪以及之后的世纪的休闲生活胜地”。他们多数来自印度、孟加拉国，每天早晨，巴士将他们从沙漠中的劳动营运到棕榈岛。如今有证据表明，很多工人忍受着高强度工作，却只能获得很低的收入——大约每周只有25英镑。而且，许多人为了到达此地，已经欠出资运送他们的代理一笔钱。最近，迪拜一个劳工权利激进分子KV Shamsudheen说，借钱的利率可能高达每年120%。2006年，100名移民工人在酋长国（Emirates）自杀，目前自杀的工人数量还在上升。
http://dycj.ynet.com/article.jsp?oid=40740290
本版新闻 _图片(12/31) 更正(12/31) 一个品牌的死亡(12/31) 金融笑话走俏美国(12/31) “考古”当代艺术(12/30) “矛盾”背后真实的巴菲特(12/30) GETTY年度体育图片(12/30) Fusion_Music，将传统民乐混搭为新鲜时尚(12/29) 戴爱群(12/29) 85岁登山狂人又上路(12/25)
◇字体：［大 中 小］ 发表评论 本版PDF 北青网 - 第一财经日报：罗敏 (08/05/29 10:47)
曾经被宣传为“世界第八大奇迹”的迪拜人造岛屿“棕榈岛”，如今正被一些先期入住的居民抱怨为“世界第八大错误”
酝酿成形一个梦想需要很多年，证明它不完美却轻而易举。在迪拜，人工围垦而成的“珠美拉棕榈岛”（The Palm Jumeirah）刚刚浮出水面，先期入住的人们就带来了不好的消息。酷热、拥挤和昂贵如今阴霾一般漂浮在这个水中胜地上方。这一切，一手推动棕榈岛建设的迪拜王室显然没有预想到。
将为迪拜延伸520公里海岸线的棕榈三岛，建成后将成为世界第三大人工岛屿。它被迪拜酋长称为“世界第八大奇迹”，早在上世纪90年代便已出现在当权者的脑海中。经过5年规划，2001年，迪拜人正式向蓝色海洋进军。
如今，无论在照片中，还是从空中俯瞰这三个树状的沙地及建筑其上的房屋，都能隐约感觉“世界第八大奇迹”的美妙壮观。2006年末，三岛中最小的珠美拉棕榈岛上部分别墅建成，一批“棕榈岛先锋”纷纷入住，吹起海风看起海浪来。然而，随着贝克汉姆买下此处一幢别墅的噱头变得乏味，4英里可达海滩的新鲜感逐渐凋零，生活在“第八大奇迹”的神话已显得不那么美好。现在，4000名居民正开始与阿拉伯海湾酷热的气候较劲。此处夏季最高温可达48摄氏度、湿度很高，远远超过蜂拥而至的居民原先的浪漫想象。
一年多前，一批英国人首先挥别他们日光萎靡的家乡，前来拥抱棕榈岛的灿烂光芒。紧接着是俄罗斯人，随后，是越来越多的伊朗富人。确实，棕榈岛有它处难企及的美好：“棕榈树叶”蜿蜒入海，清澈的海水轻轻盖上平坦的沙地，阳光充裕，寄生蟹和鱼类品种繁多，一周两次，海岸修饰如新。你只要远离尚在开发中、四年后才能正式投入运营的区域，这海洋中央的生活便难以让人置信地平和安宁。
它的尺寸、它的阳光也许是最吸引初来乍到者的地方。象征棕榈树的17片枝叶，每一片都有一里长，主干道则为八车道的汽车高速公路。目前，大约40家宾馆正在防浪堤上建设，岛屿以后还将进一步扩展。
但是，对于一年前从英国举家搬到一片“棕榈叶”上的豪华别墅的42岁策展人瑞切尔·瓦尔德斯（Rachael Wilds）来说，一切都不是她想象的模样。她花300万英镑购置的房产紧紧挨着邻居的房子，毗邻一块贫瘠、寸草不生的土地。“完全不是小册子上写的那样。”她不停抱怨，“在别墅区和青葱繁茂的热带花园之间，有一条巨大的鸿沟。我们完全被别墅的狭窄拥挤吓坏了。”
蓝色海岸上，价值数百万英镑的别墅拥挤在一起。47岁的金融顾问拉斐尔·卡纳斯（Raffaele Cannas）是2006年末拿到钥匙的第一批居民之一，然后，一批人来参观他的小屋，然后，“我不知道谁是第一个，但知道，大卫·詹姆斯（David James）挤到了我前面的位置上，安迪·科尔（Andy Cole）占领了后面的。”搬进去仅仅18个月的卡纳斯如今只想着离开搬到新西兰去。“营销很有力，把棕榈岛形容成‘世界第八大奇迹’。于是，人们的期待被掀上了天。但它并非如此。”
由于天气燥热，很多地方尚在建设中，棕榈岛的环境时常很糟。如果没有大量灌溉，草地便很快枯萎，岛上最高的树则是一些移动电话发射塔——打扮得像是棕榈树的样子。而且，使用中央空调的价格并不在当初的购买价内，如今每月空调费用可达800英镑，许多居民正在为此斗争。不断出现的问题，让一些人更热衷于将棕榈岛称为“第八大错误”，而非此前的“第八大奇迹”。
还有一些人觉得良心难安。在建造棕榈岛最紧张的时候，约4万名雇员每天工作，将9400万立方米沙子和700万吨石头变成这个“适合21世纪以及之后的世纪的休闲生活胜地”。他们多数来自印度、孟加拉国，每天早晨，巴士将他们从沙漠中的劳动营运到棕榈岛。如今有证据表明，很多工人忍受着高强度工作，却只能获得很低的收入——大约每周只有25英镑。而且，许多人为了到达此地，已经欠出资运送他们的代理一笔钱。最近，迪拜一个劳工权利激进分子KV Shamsudheen说，借钱的利率可能高达每年120%。2006年，100名移民工人在酋长国（Emirates）自杀，目前自杀的工人数量还在上升。
Charity Implores Indian Government Not To Tax NRI Deposit Accounts
Charity Implores Indian Government Not To Tax NRI Deposit Accounts
by Lorys Charalambous,
Tax-News.com, Cyprus
31 May 2004
A body representing the interests of Non-Resident Indians situated in the Gulf region is urging the government not to carry out its threat to tax income accruing from the deposit accounts of NRIs.
The Pravasi Bandhu Charitable Trust has written to Prime Minster Manmohan Singh and Finance Minister P Chidambaram, in addition to other Members of Parliament, protesting the proposal by a Reserve Bank of India panel to remove the tax exemption from NRI deposits now that foreign exchange levels are healthy.
“Seeing the current situation, the Reserve Bank of India is proposing to tax interest income on NRI deposits. The Trust appeals (to) the prime minister not to tax interest income on NRI deposits," stated the charity, pointing out that many NRIS in the Gulf region exist on low incomes.
"We hope the new government will not take such a step which will be a major drain on the hard earned savings of the NRIs from the Gulf," the letter added.
K V Shamsudheen, the chairman of the Trust, also requested that the government extend the benefits of Double Taxation Avoidance Agreements to NRIs living in the Gulf states of Oman, Qatar and the United Arab Emirates.
.
by Lorys Charalambous,
Tax-News.com, Cyprus
31 May 2004
A body representing the interests of Non-Resident Indians situated in the Gulf region is urging the government not to carry out its threat to tax income accruing from the deposit accounts of NRIs.
The Pravasi Bandhu Charitable Trust has written to Prime Minster Manmohan Singh and Finance Minister P Chidambaram, in addition to other Members of Parliament, protesting the proposal by a Reserve Bank of India panel to remove the tax exemption from NRI deposits now that foreign exchange levels are healthy.
“Seeing the current situation, the Reserve Bank of India is proposing to tax interest income on NRI deposits. The Trust appeals (to) the prime minister not to tax interest income on NRI deposits," stated the charity, pointing out that many NRIS in the Gulf region exist on low incomes.
"We hope the new government will not take such a step which will be a major drain on the hard earned savings of the NRIs from the Gulf," the letter added.
K V Shamsudheen, the chairman of the Trust, also requested that the government extend the benefits of Double Taxation Avoidance Agreements to NRIs living in the Gulf states of Oman, Qatar and the United Arab Emirates.
.
NRI investors' plea to RBI
FINANCIAL EXPRESS
Tuesday, 17 February , 2004,
A UAE non-resident Indian (NRI) welfare organisation has urged the RBI authorities to instruct the banks to issue consolidated inward remittance certificates (IRC) to companies to help NRI investors.
K.V. Shamsudheen, Chairman, Pravasi Bandhu Welfare Trust, told Business Line that NRI investors were facing a serious problem when they apply for public issues and mutual funds. Companies offering IPOs and some mutual funds are insisting that an IRC be submitted along with payment and application. "Within the limited time of a public issue, obtaining an IRC from the bank by NRIs is impractical, time consuming and troublesome," he said.
He pointed out that NRIs are investing in public issues with NRI cheques issued by Indian banks or demand draft issued from abroad.
"NRI cheques have a different series and special marks and this enables the accepting bank to identify the payments are from an NRE account. Similarly, demand drafts purchased from abroad indicate that the money is from abroad," Shamsudheen said.
Tuesday, 17 February , 2004,
A UAE non-resident Indian (NRI) welfare organisation has urged the RBI authorities to instruct the banks to issue consolidated inward remittance certificates (IRC) to companies to help NRI investors.
K.V. Shamsudheen, Chairman, Pravasi Bandhu Welfare Trust, told Business Line that NRI investors were facing a serious problem when they apply for public issues and mutual funds. Companies offering IPOs and some mutual funds are insisting that an IRC be submitted along with payment and application. "Within the limited time of a public issue, obtaining an IRC from the bank by NRIs is impractical, time consuming and troublesome," he said.
He pointed out that NRIs are investing in public issues with NRI cheques issued by Indian banks or demand draft issued from abroad.
"NRI cheques have a different series and special marks and this enables the accepting bank to identify the payments are from an NRE account. Similarly, demand drafts purchased from abroad indicate that the money is from abroad," Shamsudheen said.
Global crisis: Gulf Indians seek help
Global crisis: Gulf Indians seek help
Zee News
Dubai, March 03, 2009: A Gulf-based Indian charitable body has appealed to Prime Minister Manmohan Singh to dispense financial assistance to Indian workers in that region returning home after the global economic meltdown.
The Pravasi Bharatiya Welfare Trust, a United Arab Emirates (UAE)-based charitable organisation working for the welfare of expatriate Indians, in its letter, appealed to the Prime Minister to ensure that an immediate assistance of Rs.100,000 each is provided to deserving workers who had to return after losing their jobs in the Gulf and admission granted to the children of such workers in Indian schools.
"The Ministry of Overseas Indian Affairs is expecting an exodus of 500,000 Indian workers from various countries as a result of world economic recession," KV Shamsudheen, the trust chairman, wrote in his letter.
"Based on this, the Ministry of Overseas Indian Affairs proposed a package of Rs.114 crore (Rs.1.4 billion) to (the) Finance Ministry which was rejected by the Finance Ministry. On behalf (of) non-resident Indians we strongly condemn the decision of the Finance Ministry."
A large number of Indians are among the thousands of expatriate workers in the Gulf who are reportedly leaving the region in the wake of the global economic meltdown, which cost them their jobs.
According to media reports and surveys, the once-booming construction sector in the Gulf is among those affected by the global crisis. A vast majority of expatriate Indians work in the construction sector in the region as contract labour.
In his letter, the trust chairman called upon the Indian government as well as state governments, to provide the following as rehabilitation package to those affected: an immediate assistance of Rs.100,000 to deserving Gulf returnees; prepare a data bank of Indian workers returning from abroad; order private and public sector companies to recruit from this data bank people who are found to be experienced, exposed to moderns technology and with special work culture; approach various counties which are not affected by the financial crisis and reach an agreement to recruit the Indian workers from the data bank of foreign experienced hands; and instruct schools in India to admit the children of the returnees.
"Most of the people returning from Middle East are unskilled workers, semi skilled and semi skilled workers with low wages. They are getting termination notice before they settle down. Majority had huge loan commitment at home and abroad," Shamsudheen wrote in the letter.
The letter, citing World Bank figures released in March last year, pointed out that Indian workers abroad sent home $27 billion in 2007 to make India the top receiver of migrant remittances.
"Thanks to Indian rupee exchange advantage in 2008 it went up to $32 billion. (The) Main source of this remittance is the lower and middle-income Indian workers in the Middle East with its estimated five million NRI workers," it stated.
"The NRI remittances are over three times the foreign direct investment (FDI) to India. We believe the Indian government must look after NRIs more than foreign investors," it added.
Zee News
Dubai, March 03, 2009: A Gulf-based Indian charitable body has appealed to Prime Minister Manmohan Singh to dispense financial assistance to Indian workers in that region returning home after the global economic meltdown.
The Pravasi Bharatiya Welfare Trust, a United Arab Emirates (UAE)-based charitable organisation working for the welfare of expatriate Indians, in its letter, appealed to the Prime Minister to ensure that an immediate assistance of Rs.100,000 each is provided to deserving workers who had to return after losing their jobs in the Gulf and admission granted to the children of such workers in Indian schools.
"The Ministry of Overseas Indian Affairs is expecting an exodus of 500,000 Indian workers from various countries as a result of world economic recession," KV Shamsudheen, the trust chairman, wrote in his letter.
"Based on this, the Ministry of Overseas Indian Affairs proposed a package of Rs.114 crore (Rs.1.4 billion) to (the) Finance Ministry which was rejected by the Finance Ministry. On behalf (of) non-resident Indians we strongly condemn the decision of the Finance Ministry."
A large number of Indians are among the thousands of expatriate workers in the Gulf who are reportedly leaving the region in the wake of the global economic meltdown, which cost them their jobs.
According to media reports and surveys, the once-booming construction sector in the Gulf is among those affected by the global crisis. A vast majority of expatriate Indians work in the construction sector in the region as contract labour.
In his letter, the trust chairman called upon the Indian government as well as state governments, to provide the following as rehabilitation package to those affected: an immediate assistance of Rs.100,000 to deserving Gulf returnees; prepare a data bank of Indian workers returning from abroad; order private and public sector companies to recruit from this data bank people who are found to be experienced, exposed to moderns technology and with special work culture; approach various counties which are not affected by the financial crisis and reach an agreement to recruit the Indian workers from the data bank of foreign experienced hands; and instruct schools in India to admit the children of the returnees.
"Most of the people returning from Middle East are unskilled workers, semi skilled and semi skilled workers with low wages. They are getting termination notice before they settle down. Majority had huge loan commitment at home and abroad," Shamsudheen wrote in the letter.
The letter, citing World Bank figures released in March last year, pointed out that Indian workers abroad sent home $27 billion in 2007 to make India the top receiver of migrant remittances.
"Thanks to Indian rupee exchange advantage in 2008 it went up to $32 billion. (The) Main source of this remittance is the lower and middle-income Indian workers in the Middle East with its estimated five million NRI workers," it stated.
"The NRI remittances are over three times the foreign direct investment (FDI) to India. We believe the Indian government must look after NRIs more than foreign investors," it added.
The Sound Of Hope
Published: October 25, 2007, 11:54
The Sound Of Hope
Xpress News
October 25, 2007,
By Subramani Dharmarajan, Staff Reporter
For thousands of depressed Indian expats in the Gulf, he is a consoler and counsellor. He has been able to talk more than 100 people out of their suicidal tendencies.
K.V. Shamsudheen is popularly known as the Pravasi Bandhu(overseas relative) for these expats ever since he founded a welfare trust for overseas Indians six years ago.
"I was moved by the pathetic conditions of lower- and middle-income people who lacked financial resources for daily living after returning home despite working for decades in the Gulf," he said.
The Director of Barjeel Geojit Securities (LLC), which handles investment in Indian mutual funds for expat clients, Shamsudheen said his mission to help people in financial straits gives him a deep satisfaction.
"Helping the low-income earners is what moves me," he said.
"Financial crisis is the main reason for depression among Indians in the Gulf. Another factor is that they don’t get opportunities to talk about their problems as they are working 12 hours a day, travel for another four hours between home and the workplace and have to wake up early to get ready for the daily grind," Shamsudheen said.
While he advises people on the vital importance of making savings, he also motivates them to have a positive attitude to face challenges.
Every Monday morning he is at the Asianet studio in Media City to take calls from people for the Jeevatha Rekha (Lifeline) programme on the Malayalam radio channel. The theme is to encourage the saving habit.
"Ninety per cent of the callers admitted that they did not have enough savings despite working in the Gulf for 10 to 30 years," he said. So he advises them to make compulsory savings to create a fund which will take care of them after retirement.
"I advise them to just save Rs1,000 [Dh93] per month, which after 33 years with a 12 per cent compounded annual rate will yield them Rs5 million [Dh464,000]," he said.
Within five minutes of announcing his mobile number on radio, he gets an average of 26 calls. On Mondays, he gets an average of 500 calls during and after the programme. Calls continue to come in during the subsequent days.
He has been dispensing savings advice on the radio since 2001. He has also occasionally provided his advice to listeners for short-duration programmes on Radio Asia and Hit FM.
In early 2006, Shamsudheen started the Sandwanam (Console) programme to help depressed people – the helpline number is 050-646 7801.
The Sound Of Hope
Xpress News
October 25, 2007,
By Subramani Dharmarajan, Staff Reporter
For thousands of depressed Indian expats in the Gulf, he is a consoler and counsellor. He has been able to talk more than 100 people out of their suicidal tendencies.
K.V. Shamsudheen is popularly known as the Pravasi Bandhu(overseas relative) for these expats ever since he founded a welfare trust for overseas Indians six years ago.
"I was moved by the pathetic conditions of lower- and middle-income people who lacked financial resources for daily living after returning home despite working for decades in the Gulf," he said.
The Director of Barjeel Geojit Securities (LLC), which handles investment in Indian mutual funds for expat clients, Shamsudheen said his mission to help people in financial straits gives him a deep satisfaction.
"Helping the low-income earners is what moves me," he said.
"Financial crisis is the main reason for depression among Indians in the Gulf. Another factor is that they don’t get opportunities to talk about their problems as they are working 12 hours a day, travel for another four hours between home and the workplace and have to wake up early to get ready for the daily grind," Shamsudheen said.
While he advises people on the vital importance of making savings, he also motivates them to have a positive attitude to face challenges.
Every Monday morning he is at the Asianet studio in Media City to take calls from people for the Jeevatha Rekha (Lifeline) programme on the Malayalam radio channel. The theme is to encourage the saving habit.
"Ninety per cent of the callers admitted that they did not have enough savings despite working in the Gulf for 10 to 30 years," he said. So he advises them to make compulsory savings to create a fund which will take care of them after retirement.
"I advise them to just save Rs1,000 [Dh93] per month, which after 33 years with a 12 per cent compounded annual rate will yield them Rs5 million [Dh464,000]," he said.
Within five minutes of announcing his mobile number on radio, he gets an average of 26 calls. On Mondays, he gets an average of 500 calls during and after the programme. Calls continue to come in during the subsequent days.
He has been dispensing savings advice on the radio since 2001. He has also occasionally provided his advice to listeners for short-duration programmes on Radio Asia and Hit FM.
In early 2006, Shamsudheen started the Sandwanam (Console) programme to help depressed people – the helpline number is 050-646 7801.
Sunday, August 16, 2009
Indians in Gulf debt trap commit suicide
Indians in Gulf debt trap commit suicide
CITIZENS ALLIANCE
July 29, 2008 — Colrama
Indians in Gulf debt trap commit suicide
Daniel P George | TNN
Chennai: The Gulf dream seems to have become a death trap for Indians, with 79 of them committing suicide this year alone in the UAE due to mounting debts. Most of the victims belonged to Tamil Nadu and Kerala.
‘‘In 2006, 109 people committed suicide. The number rose to 118 in 2007. This year, from January to June, 79 Indians have killed themselves,’’ Manish Kumar Sinha of the Indian consulate in Dubai told TOI. According to voluntary organizations working among the less fortunate in Dubai, as many as 23 of the victims belonged to TN. The rest were from Kerala and other states.
K V Shamsudheen, chairman of Pravasi Bandhu Welfare Trust, said suicide among Indian expatriates has been on the rise since 2003. According to figures put out by the Indian consulate early this month, 40 suicide cases were recorded in 2003, 70 in 2004 and 84 in 2005.
‘‘On an average we get two calls a day from people who are severely depressed. In 75% of the cases, the depression is due to financial crisis which they are not able to share with others,’’ said Shamsudeen.
The Pravasi Bandhu Welfare Trust has formed another trust, named Sandwanam (consolation), with the aim to reduce suicides among Indians in the UAE.
DRIVEN TO DEATH
In ’07, 118 Indians in UAE committed suicide; the toll was 109 in ’06 .In 75% of the cases, the trigger is depression caused by financial burden. Under pressure from family to send home money, they incur loans.
While banks charge up to 8%, the interest rate is 30% on credit cards. Individual lenders charge 72% to 120% Family pressure leading to suicides
Chennai: The Gulf dream seems to have turned sour as 79 Indians, most of them belonging to TN and Kerala, ended their lives as they fell into vicious debt traps.
‘‘When a person arrives in a Gulf country, he is already in debt after spending money on visa and travel. And even before he can settle down, his family back home starts putting pressure on him to send money,’’ Shamsudheen said.
The main sources of debt, according to him, are bank loans, credit cards and individual illegal lenders. The interest rates vary. While banks charge up to 8% for loans, the rate can go up to 30% on credit cards. Individual lenders charge as high as 72% to 120%.
‘‘The family back home starts spending lavishly without considering the financial situation of the breadwinner,’’ said Shamshudeen. According to him, when people run out of money, their first option is to get a loan from the bank. When they can’t pay back the loan, they apply for credit cards. And when they reach their borrowing limit on the card, they turn to private lenders who charge exorbitant interest rates.
‘‘In some cases the minimum payment on credit cards is more than their monthly salary. Such cases are increasing by the day,’’ Shamsudheen added. The UAE is home to about 1.5 million Indian nationals. Construction workers account for the majority of the Indian migrant workforce, constituting 42.5% of the labour force.
CITIZENS ALLIANCE
July 29, 2008 — Colrama
Indians in Gulf debt trap commit suicide
Daniel P George | TNN
Chennai: The Gulf dream seems to have become a death trap for Indians, with 79 of them committing suicide this year alone in the UAE due to mounting debts. Most of the victims belonged to Tamil Nadu and Kerala.
‘‘In 2006, 109 people committed suicide. The number rose to 118 in 2007. This year, from January to June, 79 Indians have killed themselves,’’ Manish Kumar Sinha of the Indian consulate in Dubai told TOI. According to voluntary organizations working among the less fortunate in Dubai, as many as 23 of the victims belonged to TN. The rest were from Kerala and other states.
K V Shamsudheen, chairman of Pravasi Bandhu Welfare Trust, said suicide among Indian expatriates has been on the rise since 2003. According to figures put out by the Indian consulate early this month, 40 suicide cases were recorded in 2003, 70 in 2004 and 84 in 2005.
‘‘On an average we get two calls a day from people who are severely depressed. In 75% of the cases, the depression is due to financial crisis which they are not able to share with others,’’ said Shamsudeen.
The Pravasi Bandhu Welfare Trust has formed another trust, named Sandwanam (consolation), with the aim to reduce suicides among Indians in the UAE.
DRIVEN TO DEATH
In ’07, 118 Indians in UAE committed suicide; the toll was 109 in ’06 .In 75% of the cases, the trigger is depression caused by financial burden. Under pressure from family to send home money, they incur loans.
While banks charge up to 8%, the interest rate is 30% on credit cards. Individual lenders charge 72% to 120% Family pressure leading to suicides
Chennai: The Gulf dream seems to have turned sour as 79 Indians, most of them belonging to TN and Kerala, ended their lives as they fell into vicious debt traps.
‘‘When a person arrives in a Gulf country, he is already in debt after spending money on visa and travel. And even before he can settle down, his family back home starts putting pressure on him to send money,’’ Shamsudheen said.
The main sources of debt, according to him, are bank loans, credit cards and individual illegal lenders. The interest rates vary. While banks charge up to 8% for loans, the rate can go up to 30% on credit cards. Individual lenders charge as high as 72% to 120%.
‘‘The family back home starts spending lavishly without considering the financial situation of the breadwinner,’’ said Shamshudeen. According to him, when people run out of money, their first option is to get a loan from the bank. When they can’t pay back the loan, they apply for credit cards. And when they reach their borrowing limit on the card, they turn to private lenders who charge exorbitant interest rates.
‘‘In some cases the minimum payment on credit cards is more than their monthly salary. Such cases are increasing by the day,’’ Shamsudheen added. The UAE is home to about 1.5 million Indian nationals. Construction workers account for the majority of the Indian migrant workforce, constituting 42.5% of the labour force.
Anger mounts among migrant workers
TAIPEI TIMES
Anger mounts among migrant workers
Dubai is booming, but the foreign laborers whose sweat is responsible for the gleaming highrises and luxury malls are growing increasingly frustrated -- and desperate
By Rory McCarthy
THE GUARDIAN, DUBAI
Saturday, Apr 01, 2006, Page 9
At the heart of a vast construction site in the center of Dubai is a cone-shaped building that is rising at the rate of one floor a week. When it opens in two years, the Burj Dubai -- the flagship among a dozen lavish building projects in this boomtown emirate -- will be the world's tallest skyscraper and home to a Giorgio Armani hotel.
Lawns and trimmed hedges surround the site, along with seductive advertisements for apartments that promise "a tribute to fine living."
A few kilometers out in the desert is the Dubai that the tourists never see: the labor camps that house the hundreds of thousands of migrant workers who build these skyscrapers. There are no lawns, hedges or dreamy adverts. Laborers, most from India, Pakistan and Bangladesh, trapped into working here by crippling debts, sleep eight to a room and work long shifts for paltry wages and with no job security. They spend hours on bus trips to the sites each day, frequently go for months without pay and are left penniless when contractors go bankrupt.
For the first time, years of accumulated frustration and resentment have now boiled over into a series of strikes and demonstrations. They began last September when 700 workers blocked a major road, complaining about poor salaries and bad conditions. That alone was remarkable in a country where public dissent is forbidden, and was a display of the mounting anger and despair among the migrant laborers.
At least eight other strikes and demonstrations followed at building sites across the emirate, culminating last week in a rare and violent protest at Burj Dubai. In one evening rampage, 2,500 workers downed tools and attacked security staff, broke into offices and smashed computers and files. They ran through the building complex damaging more than a dozen cars and construction equipment, and caused several hundred thousand dollars worth of damage. The next day, workers at the site and other laborers working on the international airport went out briefly on strike.
The protests are growing more organized, and for the first time are challenging the image of Dubai as a peaceful and prosperous hub of investment in the Middle East. Similar protests have sprung up among migrant workers in Qatar, Oman and Kuwait.
Quick money
"I had big dreams when I came to Dubai," said Umprakash, 30, an Indian from Rajasthan, who has worked as a laborer here for a decade. "But we're in a miserable condition."
Late one afternoon, he and a group of other workers in overalls sat on the concrete floor outside their small accommodation block in the al-Quoz industrial area of the city.
Although a university graduate, he struggled to find work in India and was lured to Dubai by promises of quick money. Like most others he was forced by a recruitment agency in India to buy his visa -- a US$2,300 cost that, legally, his employer should have covered. He raised the money by selling some land and taking out the only loan he could, with an interest rate of 36 percent. It took him the first five years just to pay it back.
Now he earns US$210 a month, the average for a worker here. He sends about half back to his wife and two children, whom he sees for just a few weeks once every two years. He could have earned the same in India. Like most of the workers, he promises himself he will leave soon, just as soon as he's made a little more.
"I've forgotten all of my studies. Now I just use a hand shovel. This is no life for educated people," he said. "I wish I'd never heard of Dubai."
Some are pushed into severe depression by their circumstances. Last year 84 workers committed suicide. The number who die on site in accidents is thought to be even higher, though there are no official figures.
"Once they reach here their families at home start demanding that they send back money. Everyone believes Dubai is full of money. These men are like a candle burning for somebody else," said KV Shamsudheen, an Indian businessman who runs Pravasi Bandhu, one of a handful of support groups.
Shamsudheen counsels workers over the telephone, trying to talk them out of their despair.
"We are dealing with just the tip of the iceberg," he said.
Technically, the labor laws in Dubai offer some protection to the workers: a day's shift should be only eight hours with overtime limited to two hours and paid at a higher rate; there should be medical care, proper housing, 30 days' annual holiday and employees should not be made to work during the searing midday heat in the summer.
"The workers agree the salaries in their own countries before they come out here," said Lieutenant Colonel Rashid Bakhit al-Jumairi, an interior ministry official who works on labor issues.
"Everything here is going smoothly and according to the labor laws," he said.
Outside the rules
But much of the labor law favors employers, and there are only a few dozen inspectors to monitor up to 800,000 construction workers.
Few companies keep within the rules, even though the government has begun to blacklist and publish the names of some of those who do not. Workers who complain fear losing their jobs.
Abdullah al-Mamun, 28, came from Bangladesh two years ago expecting to work as a skilled electrician, but was given a job as an unskilled laborer, for which the wages are lower. He earns US$150 a month, far less than he was promised before he left his home. He is also struggling to pay off the heavy debt he incurred buying his visa. His company gives him no holiday entitlement and it will take him three months to save the money for an air ticket home.
"The agents who hired us are exploiting us," he said. "It is completely unlawful. I made several complaints to our general manager, but nobody listens, nothing happens. I don't want to think about the state we are in."
Workers can complain as individuals, but trade unions and workers' associations are banned, and the country has still not signed important conventions of the International Labor Organization. This is symptom of a tradeoff across the United Arab Emirates (UAE) -- there may be an economic boom, but there are precious few political freedoms.
Everyone is encouraged to profit from heady economic growth, but no one is allowed to question the political leadership or the huge economic disparities. There are no elections and no opposition parties; freedom of speech is strictly controlled.
Buying allegiance
"There is no accountability and nobody questions the system because there are no political rights," said Mohammed al-Roken, a human-rights lawyer and the former head of the Emirates' Jurists Association. "The elites are buying the allegiance of their citizens."
Because of his criticisms, Roken has been banned indefinitely from writing in local newspapers, appearing on local television or continuing his job as a university law professor. His public speeches are frequently canceled at the last minute. He and others have lobbied for two years to set up the country's first human-rights organization, but have been refused permission.
Roken said the government was under mounting pressure to tackle its labor crisis.
"There must be a change, otherwise this might explode in the face of society," he said.
The UAE is now under pressure from the US in negotiations for a free-trade agreement, with Washington pushing for improvements to workers' negotiating rights.
"Without pressure from inside and outside the country, nothing will change," Roken said.
This story has been viewed 2559 times.
Anger mounts among migrant workers
Dubai is booming, but the foreign laborers whose sweat is responsible for the gleaming highrises and luxury malls are growing increasingly frustrated -- and desperate
By Rory McCarthy
THE GUARDIAN, DUBAI
Saturday, Apr 01, 2006, Page 9
At the heart of a vast construction site in the center of Dubai is a cone-shaped building that is rising at the rate of one floor a week. When it opens in two years, the Burj Dubai -- the flagship among a dozen lavish building projects in this boomtown emirate -- will be the world's tallest skyscraper and home to a Giorgio Armani hotel.
Lawns and trimmed hedges surround the site, along with seductive advertisements for apartments that promise "a tribute to fine living."
A few kilometers out in the desert is the Dubai that the tourists never see: the labor camps that house the hundreds of thousands of migrant workers who build these skyscrapers. There are no lawns, hedges or dreamy adverts. Laborers, most from India, Pakistan and Bangladesh, trapped into working here by crippling debts, sleep eight to a room and work long shifts for paltry wages and with no job security. They spend hours on bus trips to the sites each day, frequently go for months without pay and are left penniless when contractors go bankrupt.
For the first time, years of accumulated frustration and resentment have now boiled over into a series of strikes and demonstrations. They began last September when 700 workers blocked a major road, complaining about poor salaries and bad conditions. That alone was remarkable in a country where public dissent is forbidden, and was a display of the mounting anger and despair among the migrant laborers.
At least eight other strikes and demonstrations followed at building sites across the emirate, culminating last week in a rare and violent protest at Burj Dubai. In one evening rampage, 2,500 workers downed tools and attacked security staff, broke into offices and smashed computers and files. They ran through the building complex damaging more than a dozen cars and construction equipment, and caused several hundred thousand dollars worth of damage. The next day, workers at the site and other laborers working on the international airport went out briefly on strike.
The protests are growing more organized, and for the first time are challenging the image of Dubai as a peaceful and prosperous hub of investment in the Middle East. Similar protests have sprung up among migrant workers in Qatar, Oman and Kuwait.
Quick money
"I had big dreams when I came to Dubai," said Umprakash, 30, an Indian from Rajasthan, who has worked as a laborer here for a decade. "But we're in a miserable condition."
Late one afternoon, he and a group of other workers in overalls sat on the concrete floor outside their small accommodation block in the al-Quoz industrial area of the city.
Although a university graduate, he struggled to find work in India and was lured to Dubai by promises of quick money. Like most others he was forced by a recruitment agency in India to buy his visa -- a US$2,300 cost that, legally, his employer should have covered. He raised the money by selling some land and taking out the only loan he could, with an interest rate of 36 percent. It took him the first five years just to pay it back.
Now he earns US$210 a month, the average for a worker here. He sends about half back to his wife and two children, whom he sees for just a few weeks once every two years. He could have earned the same in India. Like most of the workers, he promises himself he will leave soon, just as soon as he's made a little more.
"I've forgotten all of my studies. Now I just use a hand shovel. This is no life for educated people," he said. "I wish I'd never heard of Dubai."
Some are pushed into severe depression by their circumstances. Last year 84 workers committed suicide. The number who die on site in accidents is thought to be even higher, though there are no official figures.
"Once they reach here their families at home start demanding that they send back money. Everyone believes Dubai is full of money. These men are like a candle burning for somebody else," said KV Shamsudheen, an Indian businessman who runs Pravasi Bandhu, one of a handful of support groups.
Shamsudheen counsels workers over the telephone, trying to talk them out of their despair.
"We are dealing with just the tip of the iceberg," he said.
Technically, the labor laws in Dubai offer some protection to the workers: a day's shift should be only eight hours with overtime limited to two hours and paid at a higher rate; there should be medical care, proper housing, 30 days' annual holiday and employees should not be made to work during the searing midday heat in the summer.
"The workers agree the salaries in their own countries before they come out here," said Lieutenant Colonel Rashid Bakhit al-Jumairi, an interior ministry official who works on labor issues.
"Everything here is going smoothly and according to the labor laws," he said.
Outside the rules
But much of the labor law favors employers, and there are only a few dozen inspectors to monitor up to 800,000 construction workers.
Few companies keep within the rules, even though the government has begun to blacklist and publish the names of some of those who do not. Workers who complain fear losing their jobs.
Abdullah al-Mamun, 28, came from Bangladesh two years ago expecting to work as a skilled electrician, but was given a job as an unskilled laborer, for which the wages are lower. He earns US$150 a month, far less than he was promised before he left his home. He is also struggling to pay off the heavy debt he incurred buying his visa. His company gives him no holiday entitlement and it will take him three months to save the money for an air ticket home.
"The agents who hired us are exploiting us," he said. "It is completely unlawful. I made several complaints to our general manager, but nobody listens, nothing happens. I don't want to think about the state we are in."
Workers can complain as individuals, but trade unions and workers' associations are banned, and the country has still not signed important conventions of the International Labor Organization. This is symptom of a tradeoff across the United Arab Emirates (UAE) -- there may be an economic boom, but there are precious few political freedoms.
Everyone is encouraged to profit from heady economic growth, but no one is allowed to question the political leadership or the huge economic disparities. There are no elections and no opposition parties; freedom of speech is strictly controlled.
Buying allegiance
"There is no accountability and nobody questions the system because there are no political rights," said Mohammed al-Roken, a human-rights lawyer and the former head of the Emirates' Jurists Association. "The elites are buying the allegiance of their citizens."
Because of his criticisms, Roken has been banned indefinitely from writing in local newspapers, appearing on local television or continuing his job as a university law professor. His public speeches are frequently canceled at the last minute. He and others have lobbied for two years to set up the country's first human-rights organization, but have been refused permission.
Roken said the government was under mounting pressure to tackle its labor crisis.
"There must be a change, otherwise this might explode in the face of society," he said.
The UAE is now under pressure from the US in negotiations for a free-trade agreement, with Washington pushing for improvements to workers' negotiating rights.
"Without pressure from inside and outside the country, nothing will change," Roken said.
This story has been viewed 2559 times.
ARBETAREN
TO READ A AN ARTICLE ON EXPATRIATE WORKERS PLEASE CLICK:
http://www.arbetaren.se/bilagor/dubai.pdf
KV Shamsudheen försöker informera om situationen i Dubai innan arbaterna hunnit resa dit. Högt ska det vara....................
http://www.arbetaren.se/bilagor/dubai.pdf
KV Shamsudheen försöker informera om situationen i Dubai innan arbaterna hunnit resa dit. Högt ska det vara....................
Sharjah to have Indian trade centre within 15 months
The Economic Times
19 Nov 2008, 1523 hrs IST, IANS
SHARJAH: A new Indian Trade and Exhibition Centre to promote Indian trade and business in the Middle Eastern and North African markets will come up
here within the next 15 months."The design for the building is ready and we hope to have the new trade centre open within the next 12 to 15 months," Sudesh Aggarwal, chairman of the Indian Business and Professional Council (IBPC) at Sharjah said at the council's annual business meeting here Tuesday night.
The new centre is being set up with approval from India's ministry of commerce and is aimed at promoting trade between this region and India. The IBPC, a recognised organisation representing the Indian business and professionals in Dubai, has signed an agreement with the Sharjah Chamber of Commerce and Industry to set up the centre.
Announcing the new trade centre in February this year, Aggarwal said: "Indian businessmen planning trade ventures here need not to worry about getting a local sponsor. We will sponsor them and even give them office space on a temporary basis till they get permanent office space." To be built on a 20,000 square feet area, it will comprise a basement and three floors with a total built-up area of 50,000 square feet.
It will have conference rooms, exhibition halls, office space, an auditorium, administrative offices, storage space and a restaurant. The centre will hold exhibitions of Indian products and services and host meetings, conferences and seminars for the Indian business and professional community and visiting delegations.
It will also lease office and exhibition space to Indian government enterprises and corporations, local companies providing services to the centre and provide information about Indian products and services.
At Tuesday's meeting attended by around 50 businessmen and professionals based in Sharjah, various issues of concern relating to Indian businesses in this emirate in the United Arab Emirates (UAE) were also taken up for discussion.
Among the issues that came up were a new UAE law requiring all expatriate residents and nationals of this Gulf nation to have identity cards, visa procedures, licensing, setting up of businesses in Sharjah, customs duty, labour, cost of business in UAE, and free trade agreements between the Gulf and other parts of the world.
A panel comprising Aggarwal, IBPC vice-chairman K.V. Shamsudeen and IBPC governing body members-elect Hayat Yar Khan and Saju Augustine listened to the issues and decided to form a delegation that will present the issues to authorities concerned in Sharjah for action.
"A committee shall be formed in the due course and the concerns, problems and suggestions, raised by the Indian business community in Sharjah shall be put forward to the Sharjah government departments," Aggarwal said at the conclusion of the deliberations.
India is the top trade partner of the emirate of Sharjah with bilateral trade valued at $2 bn in 2007. According to figures released by the Sharjah Economic Development Department in June this year, India was followed by Japan at $953 mn and China at $626.2 mn.
Imports into Sharjah from India in 2007 stood at $1.8 bn, a rise of 5.9 per cent from the previous year. Exports, including re-exports from Sharjah to India, totalled $300 mn in 2007, a rise of 50 percent from 2006
19 Nov 2008, 1523 hrs IST, IANS
SHARJAH: A new Indian Trade and Exhibition Centre to promote Indian trade and business in the Middle Eastern and North African markets will come up
here within the next 15 months."The design for the building is ready and we hope to have the new trade centre open within the next 12 to 15 months," Sudesh Aggarwal, chairman of the Indian Business and Professional Council (IBPC) at Sharjah said at the council's annual business meeting here Tuesday night.
The new centre is being set up with approval from India's ministry of commerce and is aimed at promoting trade between this region and India. The IBPC, a recognised organisation representing the Indian business and professionals in Dubai, has signed an agreement with the Sharjah Chamber of Commerce and Industry to set up the centre.
Announcing the new trade centre in February this year, Aggarwal said: "Indian businessmen planning trade ventures here need not to worry about getting a local sponsor. We will sponsor them and even give them office space on a temporary basis till they get permanent office space." To be built on a 20,000 square feet area, it will comprise a basement and three floors with a total built-up area of 50,000 square feet.
It will have conference rooms, exhibition halls, office space, an auditorium, administrative offices, storage space and a restaurant. The centre will hold exhibitions of Indian products and services and host meetings, conferences and seminars for the Indian business and professional community and visiting delegations.
It will also lease office and exhibition space to Indian government enterprises and corporations, local companies providing services to the centre and provide information about Indian products and services.
At Tuesday's meeting attended by around 50 businessmen and professionals based in Sharjah, various issues of concern relating to Indian businesses in this emirate in the United Arab Emirates (UAE) were also taken up for discussion.
Among the issues that came up were a new UAE law requiring all expatriate residents and nationals of this Gulf nation to have identity cards, visa procedures, licensing, setting up of businesses in Sharjah, customs duty, labour, cost of business in UAE, and free trade agreements between the Gulf and other parts of the world.
A panel comprising Aggarwal, IBPC vice-chairman K.V. Shamsudeen and IBPC governing body members-elect Hayat Yar Khan and Saju Augustine listened to the issues and decided to form a delegation that will present the issues to authorities concerned in Sharjah for action.
"A committee shall be formed in the due course and the concerns, problems and suggestions, raised by the Indian business community in Sharjah shall be put forward to the Sharjah government departments," Aggarwal said at the conclusion of the deliberations.
India is the top trade partner of the emirate of Sharjah with bilateral trade valued at $2 bn in 2007. According to figures released by the Sharjah Economic Development Department in June this year, India was followed by Japan at $953 mn and China at $626.2 mn.
Imports into Sharjah from India in 2007 stood at $1.8 bn, a rise of 5.9 per cent from the previous year. Exports, including re-exports from Sharjah to India, totalled $300 mn in 2007, a rise of 50 percent from 2006
Subscribe to:
Posts (Atom)
