NRI body slams move to charge User Fee at Trivandrum airport

Report appeared in India media

 

NRI body slams move to charge User Fee at Trivandrum airport

Dubai, May 12 UNI

 

An NRI organisation working for the welfare of the low income overseas Indians in the Gulf has slammed the India government's decision to slap a user fee of Rs 755 on every outbound international passenger saying it is discriminatory.

 

In a letter to the civil aviation minister Praful Patel, the Pravasibandhu Trust said it was surprised that the Airports Economic Regulatory Authority (AERA) had rejected the Airports Authority of India (AAI) demand to levy the same fee on domestic passengers.

 

The government should have studied the profile of the international passengers from the airport, majority of who are low paid blue collar workers compared to domestic users who are far richer in comparison, Mr K V Shamsudheen, Chairman of the Trust told UNI.

 

"If the AAI feel the fee is essential to make the project viable, they may introduce a reduced fee of Rs 250 from all the users of the airport, one way" he said appealing for immediate intervention by the minister.

 

The member of Parliament from Trivandrum Dr Shashi Tharoor has also opposed the fee, which will be a double whammy on the low income Gulf workers many of who are now

returning from the region because of recession. UNI

Pension scheme launched for non-resident Keralites

Pension scheme launched for non-resident Keralites
By BEGENA P PRADEEP, Posted on » Saturday, May 15, 2010

BAHRAIN'S Keralite community is being urged to join a government-backed pension fund introduced for expatriates.

People need to pay a fixed premium every month to the India-based Kerala Pravasi Kshemanidhi Board (Kerala Expatriate Welfare Board) to receive a pension from the government when they reach 60.

The Bahrain Prathibha Association is spearheading an awareness campaign in Bahrain and held an interactive session with board chairman T K Hamza at the Bahrain Keraleeya Samajam, Segaiya.

"This scheme is open only for expatriate Keralites and is run by the Kerala government," said Mr Hamza who is also a former MP.

"People need to pay a fixed premium every month in order to receive a pension from the government when the he or she turns 60.

"Members can also avail a loan for a nominal rate of interest from this amount to build a house, for their daughters' marriage or (medical) treatment.

"Though the registration fee is a fixed Rs200 (BD1.7) for all, the receivable pension amount varies according to the category they belong to, based on whether the person is living outside Kerala but in India, outside India or has returned after working outside Kerala."

Mr Hamza said the monthly premium for those living outside India was Rs300 (BD2.500) and Rs100 (800fils) for others.

"This scheme is definitely reliable because it is government-run and any member who has paid their premium for five years and above will become eligible to get a pension when they reach 60," he said.

"All they need to do is fill the application form and send it to their office in Kerala, along with a passport-size photo and copies of their passport including the page with the visa stamped on it and a demand draft of Rs200.

"People can also co-ordinate with a registered association or club in Bahrain who can co-ordinate and send the forms of many people.

"As proof of their membership with the scheme, they will receive an identity card with their picture on it."

Bahrain Prathibha president P T Narayanan said the group was visiting labour camps across Bahrain to educate people about the benefits of the scheme.

"We have also met with the heads of various associations who have pledged their support," he said.

Application forms are available at Bahrain Financing Company branches and the Bahrain Prathibha office in Salmaniya.

The GDN reported in March that only five per cent of Indian expatriates working in Bahrain and the Gulf would be able to lead a comfortable life if they were forced to return home, according to a regional study by the Pravasi Bandhu Welfare Trust (PBWT).

The results reflected the extravagant lifestyles of their families who they send money to and the fact they do not save the money received, said chairman K V Shamsudeen.

He warned the problem was putting more pressure on low- and middle-income Non-Resident Indians (NRIs) and said many, who had worked abroad for decades, were returning home with no resources to look after their families.

Only two per cent of families were found to be saving from their remittances and though 98pc agreed the lifestyle of their families had improved, only 5pc felt they could lead a comfortable life if they go back to permanently settle in India.

Around five million NRIs work in the Gulf, 60pc of whom are from Kerala with the majority belonging to middle- or low-income groups.

Know budgeting skills to manage money

Emirates Business 24-7


Know budgeting skills to manage money
Managing household budgets can become a tricky affair if not done properly.
By Sunil Kumar Singh
Published Tuesday, April 13, 2010

NRIs need to curtail wasteful spending as an answer to appreciation of the rupee, say analysts. (EB FILE)

Control your spendthrift lifestyle and profligacy before it becomes an albatross around the neck. In case of managing daily expenses, this old wisdom is perhaps more aptly suited. But managing home budgets or household expenses can turn out to be a tricky affair if not managed properly.

Case in point being the concerns of non-resident Indians (NRIs) as the rupee has appreciated in value. Many are thinking to curtail the amount of money they remit for household expenditure to their families in India. But analysts say the solution lies somewhere else. So what is the best way to manage monthly expenses?

Analysts say most expatriates have to go back to their roots and settle in their home country one day. Hence, if they don't have sufficient savings back home they'll have no financial security.

Save first, spend later

The basics of budgeting start with a clear understanding of what comes first – saving or expenditure. However, analysts say a lot of people err when it comes to making a clear distinction between these two.

KV Shamsudheen, Director of Barjeel Geojit Securities, Dubai, said: "A major misconception is that saving is whatever that is left after the expenditure. This notion of saving is completely baseless and if they follow this definition they won't be able to save anything. On the contrary, I tell them to reverse the definition, that is, save first and then spend."

He says another way to manage family expenditure is to scrutinise the monthly spendings and mark out which ones are necessary and which ones are not.

"They should follow an expenditure control chart where they should note down all daily expenses and this suits to all workers – low, middle as well as high-salaried," says Shamsudheen. "Draw three columns – essential, optional and waste. At night, before going to sleep, take a look at the daily expenses and people will find out how much of their daily expenditure is either unnecessary or wasteful.

"People should also stick to a fixed monthly saving amount, which they should write above the chart so every time they look at the chart, it reminds them of the amount they have to save," he says.

Shamsudheen says the concept of micro saving and systematic investment is applicable to everyone. "If a person is saving 1,000 units of any currency every month, the total amount saved after spending 30 years, say in a country like the UAE, would be 360,000 units.

"Whereas, if the person invests this amount every month in any investment scheme, which will give at least 12 per cent return, at the end of 30 years he could get an amount of 3.5 million very easily.

"If the person decides to take the monthly return from the investment for his livelihood after 30 years, he will get a monthly income of 35,000 units. Therefore, instead of saving, an expat working abroad should invest at least 1000 units of the currency of his choice every month," says Shamsudheen.

Understanding savings

"Saving alone is not a solution. Many people misunderstand bank deposits as investment. Keeping money in the bank is not an investment, but a safe accumulation of our saving for investment. The bank where you deposit will always give you a partial compensation of inflation and tax and nothing more that. Even if the bank gives you full compensation of inflation it is not enough," Shamsudheen says.

Understanding our real needs when it comes to spending money is the key. "Whatever salary you are getting is your earning and you've have to live within that earning," he says. "If you live beyond your means, you will have to borrow money. We come across many people here who have four or five credit cards. Also, each of their family members uses multiple supplementary credit card that results in wasteful expenditure.

"Spending Dh20,000 or Dh30,000 in Dubai is easy. But people should realise that when they settle permanently in their home countries, how would they maintain the same lifestyle they were accustomed to in the Gulf," he says.

Shamsudheen also says that families of expatriates, when they receive the money, should manage it properly.

The lifestyles of an NRI and a resident Indian are very different. Families of NRIs in India spend more than those of resident Indians. However, there's a need to control unnecessary expenses back home.

"Family members have to realise the suffering and the nature of temporary stay of their breadwinners and therefore they must inculcate the habit of saving for the rainy day, says Shamsudheen, who has conducted many awareness classes for low- and middle- income Indian expatriates on the need for saving and investment.

Some long-term residents should have residency - THE NATIONAL

THE NATIONAL

Some long-term residents should have residency

Sultan Al Qassemi

Last Updated: February 13. 2010

In Shelter, a converted warehouse in Dubai’s Al Quoz industrial district, a young Emirati stood up in front of a crowd of 200 nationals and expatriates. They gathered to hear him speak about his vision for Dubai as it emerges from the effects of the global financial crisis.

Mishaal al Gergawi, the speaker, who also happens to be a local government official, stood in front of the crowd sporting a black blazer and blue jeans – not the khandoura and ghutra that many expatriates typically associate with Emiratis. While his clothes weren’t representative of the country, his ideas and values were very much reflective of popular sentiments.

The National’s Tom Gara covered Mapping Dubai, a talk that grappled with various issues ranging from labour reform to accountability within government. One issue that Mr al Gergawi mentioned that continues to be misrepresented within the local Arabic press and among nationals is that of residency.

Though a report carried in an Arabic language news service stated that Mr al Gergawi had called for giving citizenship to second and third generation expatriates living in the country in his talk, that was simply not true. I know this because I was there. What was called for and debated was a long-term residency programme for expatriates so they would no longer have the status of transient interlopers, but instead be acknowledged as stakeholders.

In fact, The National has reported other efforts in this direction: the Abu Dhabi Police is initiating a pilot programme whereby it would start recruiting non-Emiratis into its community police force to deal with issues such as antisocial behaviour, dangerous driving and crime prevention. With this, the Abu Dhabi Police have taken the first step into converting the expatriate population into stakeholders.

A misrepresentation of what Mr al Gergawi has said has happened before. Recently a friend of mine told me that he didn’t appreciate “your calls” – as in Mr al Gergawi’s and my own – for granting citizenship to foreigners in the country. Neither of us has ever proposed this. When I asked my friend if he read Mr Gergawi’s article his answer was “no, but someone told me”.

Many locals know expatriates who have been here from as far back as the 1970s. Today many of them are approaching retirement age and are being asked to leave. Many of these individuals contributed to the UAE’s formation; they, along with their Emirati colleagues, were the building blocks of this country.

In fact, my very own business partner arrived in the UAE in 1969 on a British issued visa and has been here ever since. He went on to serve in the UAE army for nearly two decades before starting his own enterprise.

It is not a secret that many Emiratis, including myself, believe that the vast majority of expats would not qualify to be nationals. They don’t speak in our accent, let alone in our language. They don’t dress like us or celebrate according to our customs. The thought of granting them UAE passports doesn’t sit easily at all with us. On the other hand there are expatriates who have served this country well, raised their families here and though they didn’t adopt our customs and traditions, they respected them.

It must be made crystal clear that this residency carries no promise of citizenship whatsoever and is granted completely upon the discretion of the federal government. This could never be a local government initiative as some have promised. It would have been beyond their scope to grant long term residency to people who purchase apartments. The difficulties of such an effort came undone when the financial crisis hit the country. Long-term residency should also be introduced in a manner so that only the right people qualify for it.

But without a long-term residency programme, people will continue to view Abu Dhabi, Dubai, Sharjah and their sister emirates as a short-term investment where they can make a quick buck and move on. I would prefer that those who worked and saved money in the UAE in their productive years could enjoy this wealth and spend it in the country, for instance, in the local malls, using our airports and eating in our restaurants, when they retire. These individuals after all are familiar with UAE customs and, if they returned home, they wouldn’t rant about their problems with this country.

Like Mishaal al Gergawi’s attire during his talk, long-term expatriates may not appear to be representative of the country, but as the Abu Dhabi Police showed with their efforts, their values are not always so different from ours after all.

Sultan Sooud Al Qassemi is a non-resident fellow at the Dubai School of Government

Indian Businessmen Welcome Budget in Khaleej Times

Indian Businessmen Welcome Budget

KHALEEJ TIMES

Issac John

26 February 2010, 9:22 PM DUBAI - Indian businessmen and professionals in the UAE welcomed budget proposals made by Finance Minister Pranab Mukerjee on Friday as “balanced and pragmatic” with a focus on 
fiscal prudence.
While the proposal to lower the Tax Deducted at Source rate on interest earned on NRI deposits from 20 per cent to 10 per cent was greeted by non-residents as a step that would encourage non-residents to deposit their money with banks in India, the forward-looking and inclusive budget also drew widespread applause for its focus on rural development, health and education, housing for the poor, agriculture and infrastructure growth.

The roadmap drawn to reduce fiscal deficit from 6.5 per cent to 5.5 per cent next year and 4.1 per cent thereafter has been expected, but the biggest surprise, most of those who spoke to Khaleej Times confessed, was the reduction of personal taxation – a move that could put around 3-4 per cent additional income in the hands of the taxpayer.

Following are excerpts from their comments:

Yusuffali MA, Managing Director of EMKE Group and Director of Abu Dhabi Chamber of Commerce & Industry:
Given the circumstances, the finance minister has done a good job. The fact that we have achieved a healthy growth rate of 7.2 per cent and aiming for double-digit growth for next year is a commendable feat.

The renewed focus on agriculture, infrastructure, rural development, health, education and housing for the poor is very crucial to India’s development and certainly will pay dividends in the long run. The positive revision in personal income tax rates will put more money in the pockets of the middle class, thereby increasing the buying power.

Easing of foreign direct investment regulations and allowing more private players in the banking sector are very welcome steps. Customs duty has come down. This will ignite growth in the manufacturing sector.

The increase in fuel prices will surely not go down well with the masses and there will be lots of going back and forth on this. But what surprises me the most is the sidelining of NRIs in the budget.

Sunny Varkey, Chairman of GEMS Education Group:
The forward-looking and inclusive budget seeks to spur economic growth and promote social well-being with focus on health and education, housing for the poor, agriculture and infrastructure development. The increased thrust on rural development and job creation make the budget proposals pragmatic and progressive. The budget also gives a roadmap to reduce fiscal deficit from 6.5 per cent to 5.5 per cent next year and 4.1 per cent thereafter. The proposal to lower Tax Deducted at Source rate on interest earned on NRI deposits will encourage non-residents to place their money with banks in India. The Finance Minister has done a delicate balancing act by rolling back some of the fiscal stimulus without hampering the growth prospects of the nation.

Paras Shahdadpuri, Chairman of Nikai Group, and President of the Indian Business and Professional council:
The biggest challenge for the government was to contain its fiscal deficit of estimated 7.8 per cent (which actually has come down to 6.9 per cent) for last year to 5.5 per cent in the new fiscal year. This meant rolling back some of the fiscal stimulus without impacting on the growth of the economy; and the Finance Minister has done a brilliant job on that. While the Western countries with more than 10 per cent fiscal deficit have failed to bring in this fiscal discipline, India has shown the way.

This is a growth oriented and inclusive budget, providing focus to the development of the rural masses. The government has now seriously set its focus on India’s infrastructure growth by offering tax exemption in Infra Bonds. But I strongly feel that much more need to be done to mobilise more than $500 billion required for the infrastructure development. If infrastructure needs are met, India can grow with double-digit GDP for the next 25 years and thus become world’s second or third biggest economic power.

Raju Menon, Chairman & Group Managing Partner, Morison Menon:
The budget was a need based one with respect to the outlay in the area of agriculture, specially for food security, rural development, rural employment creation, empowerment of women, health sector, eradication of slums and so on. Investment in infrastructure is also a need based spending as wide network of roads and rails are considered as the barometer for the development of the economy for the fast progress. It is so encouraging to note that the primary and secondary education nation wide is brought free which will really benefit the poor to empower their children to participate in the development of the country and will provide a hope to transform the entire family to lower middle class from the poor class once these children can qualify for better employment prospects.

Increase in the petroleum prices is not at all justified on the ground of generating more budget revenue as it is giving an increased burden of price hike in every area and it is going to hit as additional burden on the overall price hike exist in the system. It affects 1.1 billion population and finance minister’s justification of today’s low level crude price is not at all acceptable considering the current inflation on the essential commodities. The price increase is going to severely affect the down trodden largely and the 10 million middle class who have benefited out of the direct tax relief may be able to afford to absorb the price hike due to the given 
concessions.

There was a mention about the investigation of the foreign wealth of the residents who had evaded taxes. Probably, in my opinion, Finance Minister should provide an opportunity to declare the undisclosed wealth by providing a lower rate of tax, say 20 per cent flat with out any penalty and there can be a condition that the 50 per cent of the undisclosed wealth subjected to the declaration should be invested in infrastructure projects. Who knows, the entire 6.9 per cent current fiscal deficit may be financed from that source. It is not uncommon to give such concession in India.

Ram Buxani, President ITL-Cosmos Group:
The budget this year is again befitting a seasoned Finance Minister who has tried to take care of all areas within means available to him.

Ignoring Overseas Indians has been his way right from the beginning. Otherwise, with present scenario in Gulf countries, some rehabilitation packages should have been thought of and provided for in the budget for returning workers.

Overseas Indians should be considered as a main export commodity as they bring in valuable foreign exchange. They need to be treated no less importantly than rural population. Government of India may be justified in its attitude towards NRIs in view of present foreign exchange situation, but their role should not be forgotten. A fair percentage of inward foreign remittance should be earmarked for the welfare of returning workers. Tax on income has been further rationalized which should be welcomed by Resident Indians.

Sudhir Kumar Shetty, Chief Operating Officer, Global Operations of UAE Exchange:
It is a very responsible, controlled budget. Road map to control the fiscal deficit from 5.5 per cent of the GDP in 2010-11 to 4.1 per cent in 2012-13 indicates that the government is serious in achieving financial discipline. Even though the middle-income group is given an incentive by way of reduction in individual income tax, the increased Central Excise on petrol and diesel and other taxes will hurt the economy. To control inflation, create more job opportunities and proper management and monitoring of allocations would be a challenge. I am happy that RBI is considering banking licence to private operators.

Kamal Vachani, Director Al Maya group and Regional Director of ESC India:
The revised tax slab proposal will help put more money in hands of consumer and enhance consumption. The proposal to lower customs duty will ignite growth in the manufacturing sector.

The proposal to ease of foreign direct investment regulations and allowing more private players in the banking sector are steps aimed at attracting more foreign capital to boost infrastructure development. Reforms in the farm sector and an increase in social welfare spending, renewed focus on rural education, employment and development are measures aimed at taking India to the fast track of economic growth.

Rizwan Sajan, Chairman, Danube Building Materials:
I believe it was a balanced and pragmatic budget. It was heartening to hear, for the first time ever, the Finance Minister speak of the “big picture” at the beginning of his speech and stress the fact that the government is ‘‘an enabler” in the development of the country. This is very

positive and demonstrates government’s intent to have public-private partnership for overall economic development. Reduction of fiscal deficit from 6.5 per cent to 5.5 per cent next year and 4.1 per cent thereafter is encouraging. With GDP expected to return to “normal times” at 9 per cent, double digit growth should not be distant dream. This is a commendable achievement given that we are still under the shadow of global recession. Increased spending in infrastructure than revenue expenditure signals the need to build quality assets rather than spend on expenses. Farm sector reforms and social spend increase will augur well for the vast majority of Indians in the agricultural and rural sector. However, petrol/diesel price increase was a surprise and this could have an impact on the overall cost.

Johnson Thomas, Managing Director, First Flight Couriers:
The proposed budget is a balanced, responsible and cautious one. Without the pressure of upcoming elections, the budget focuses mainly on long-term benefits. A major concern is the fuel price hike that would give rise to inflation. Nothing has been done to improve exports that had gone down by 23 per cent in the last fiscal year. Controlled fiscal deficit, tax relief for the middleclass sector and a sustained growth rate are the major positive aspects of this budget. Overall, a solid budget welcomed by the majority. This is evident by the positive response of the share market.

Abbas Ali Mirza, Board Member, Indian Business and Professional Council:
A very responsible budget with not many negative surprises which certainly delighted the Indian stock markets — a swift vote of confidence given by investors to the budget proposals. In the wake of the global economic and financial downturn any boost to investor confidence is a move in the right direction. According to the finance minster this budget was presented with the following three primary objectives in mind, namely, getting back on track the economic growth trajectory of 9 per cent GDP growth rate, fiscal consolidation and inclusive growth.

The finance minister believes these objectives were clearly achieved with a major thrust in the budget on infrastructure spending with a historic 46 per cent budget allocation to infrastructure (including 25 per cent to rural infrastructure) and a significant budget allocation of 37 per cent to social sectors.

Jitendra Gianchandani, Chairman of Jitendra Group of Companies:
This budget is a perfectly balanced one for the burgeoning $ 1 trillion Indian economy. The big picture of finance budget is four fold: one the government is committed to containing fiscal deficit to 5.5 per cent.. Two, the lower personal income tax slabs would enable consumers to have more money, triggering a consumer-led growth. Third point is something that affects even NRIs in some ways.

FM has committed to goods and services tax (GST) and direct tax code (DTC) to start from April 2011. We all know that GST is part of the proposed tax reforms that center round evolving an efficient and harmonized consumption tax system in India.

K.V Shamsudheen, Vice Chairman, Indian Business and Professional Council:
The Finance Minister has decided to collect more direct taxes and corporate tax even after extending highest threshold limit of 30 per cent tax to Rs. 800,000 and providing it for the development and quality life of rural India by increasing allocation for farm credit for agriculture, health insurance and facilities, education and rural infrastructure. It will generate more job opportunities and help boost farmers’ income. The budget has totally neglected non-resident Indians. If we do not react immediately, the passage of Direct Tax Code passes will be a backlash for non resident Indians.

Road Signboards

KHALEEJ TIMES

Road Signboards

2 January 2010

While travelling from Abu Dhabi city to Musaffa through the Ring Road, we have to take a left on the flyover in front of the Sheikh Zayed Mosque. But the signboard indicating Musaffah is not visible because it is completely covered by date palm leaves. If some one misses this road he has to travel a long way to get back to his destination.

I request the authorities concerned to re-erect the signboard on the flyover in front of Sheikh Zayed mosque. This will help motorists is finding their way properly.

K V Shamsudheen,
Sharjah