DNA 5th July

SC open to liquor sale on city highways

• The Supreme Court prima facie observed that there may be nothing wrong in de-notifying particular stretches of highways running inside city limits as city roads and such declassification does not violate its order that national and State highways across the country should be liquor-free zones.
• A Bench of Chief Justice of India J.S. Khehar and Justice D.Y. Chandrachud orally observed that the purpose of the December 15, 2016 prohibition order on sale of liquorwithin a distance of 500 metres from the outer edge of national and State highways was to prevent drunken driving on high-speed thoroughfares.
• Chief Justice Khehar remarked that traffic inside city limits is usually slow and heavy, and stretches denotified fall within the city limits.
• The goal of the liquor ban was to prevent drunken driving in fast-moving traffic. The pace of traffic within the city is very different from traffic outside city limits. Purpose of the ban is to avoid drivers getting inebriated while driving on highways inter-linking cities,” 
• The indication from the court may spell future relief to hotels, pubs, especially in the metros, which were forced to shut down following the ban.
• The relief is palpable among these establishments as the court, in March 2017, clarified that the ban was not restricted to just liquor shops alongside the highways but also to other larger establishments, including pubs and hotels.

Constituional Snippets

Article 19(1)(g) provides that all the citizens have the right to practise any profession ,or to carry on any occupation,trade or business.

Governor threatened and insulted me, says Mamata

• West Bengal witnessed an unprecedented political showdown on Tuesday with Governor Keshari Nath Tripathi and Chief Minister Mamata Banerjee indulging in a public spat.
• At a press meet she called after Mr. Tripathi raised the communal flare-up at Baduria in the North 24 Parganas during a telephonic talk, the Chief Minister accused the Governor of “threatening and insulting” her. 
• At one point, she was unable to take the “humiliation” and felt like “quitting” her post
• Observing that the Governor cannot remain a mute spectator to the affairs of the State, the statement said it is “proper for the Hon’ble Governor to bring to the notice of the Hon’ble Chief Minister any serious grievance made by any member of [the] public or any serious event happening in the State.”

 Article 356. Provisions in case of failure of constitutional machinery in State

(1) If the President, on receipt of report from the Governor of the State or otherwise, is satisfied that a situation has arisen in which the government of the State cannot be carried on in accordance with he provisions of this Constitution, the President may be Proclamation

Centre plans partial removal of AFSPA in Assam, Arunachal Pradesh

• The Union government is considering a partial removal of the Armed Forces Special Powers Act (AFSPA) from Assam and Arunachal Pradesh and has asked the State governments for their comments, a senior Home Ministry official said.
• AFSPA gives powers to the Army and central forces deployed in "disturbed areas" to shoot to kill and arrest any suspect without a warrant.
• AFSPA came into force in 1958 at the height of the Naga insurgency movement.
• It is in force in Nagaland, Assam, Manipur, in some parts of Arunachal Pradesh and Meghalaya and Jammu and Kashmir.
• "Earlier, the notification for extending AFSPA used to be issued for six months or more. We are trying to reduce the duration to three months and will see if it could be withdrawn completely from certain areas. For the time being, proposal is only for Arunachal Pradesh and Assam," the official said.
• The official said that there was no such proposal for Jammu and Kashmir as of now.
• Tripura withdrew AFSPA in 2015.

We waited 70 years, Bibi tells Modi        [GS Mains Paper 2]

• “We love India, Mr. Modi,” said Mr. Netanyahu, adding that Israel had awaited for the visit for “a long time, 70 years to be precise.”
• India had voted against the partition of Palestine in 1947 and also against its induction as a United Nations member, finally recognizing the Jewish nation in 1950.
• It wasn’t until 1992 that full diplomatic ties were established, however, by the Narasimha Rao government.   
• On Tuesday evening, the leaders went to the Israel Holocaust memorial in Jerusalem together 

WORLD HISTORY

• A long-forgotten slice of martial history related to Mysuru will be revisited when Prime Minister Narendra Modi pays tribute to fallen Indian soldiers at the Haifa cemetery in Israel.
• The Mysore Imperial Service played a big role in the liberation of Haifa on September 23, 1918, from Ottoman Turks and Germans, by allied forces.
• This is seen as one of the fiercest battles in the west Asian theatre of World War I in which India, as a British colony, fought German and the Ottoman troops.
• The Mysore Lancers were in the 15th Imperial Service as the forces sent by the princely states of Mysore, Jodhpur and Hyderabad. 
• A special recruitment drive was conducted in the princely State and 5,000 men drafted for the war. The then Mysuru Maharaja Nalwudi Krishnaraja Wadiyar sent his troops to defend the empire and even gave nearly ₹50 lakh to the India War Fund  

 Drug-resistant TB higher among children than expected: report

 Multi-Drug Resistant (MDR) TB is higher among children than expected.

As many as 5,500 of over 76,000 children tested in nine cities have been diagnosed with TB. 

Nine per cent of these paediatric TB cases have been diagnosed to have MDR TB, according to the Foundation for Innovative New Diagnostics (FIND) and Central TB Division under the Revised National TB Control Programme (RNTCP).

. In 2016, the proportion of children among new TB patients reported was 6%

WHY??

 Absence of appropriate samples coupled with decentralised capacity to get good samples from children to test for TB remains a challenge in paediatric TB case detection

 Paediatric MDR-TB cases had not been documented so far.Children were more prone to primary MDR infection as they were in close contact with their parents and grandparents, who would have been infected. 

Challenges involved 

 TB diagnosis in children is complicated due to challenges associated with sample collection and poor sensitivity of tests like the Acid fast bacilli (AFB) smear.

Solutions:

[i] FIND, through this project, has collaborated with the Central TB Division to improve access to more sensitive diagnostic tools like the GeneXpert in the paediatric population

[ii] GeneXpert labs have been established within the reference labs of RNTCP in each of the project cities, catering to patients in both the public and private sectors

[iii]GeneXpert MTB/RIF testing was performed free of cost for all presumptive paediatric TB and drug-resistant TB patients (aged under 15 years). 

[iv]As per WHO recommendations,both sputum and non-sputum specimens are being tested using GeneXpert except stool, urine and blood

Malformed baby born to woman whose abortion plea was denied

• On March 27, the Supreme Court rejected the plea of a 28-year-old Mumbai woman to abort her pregnancy in the 27th week. The SC stated that the baby could be ‘born alive’ during the process of abortion
• On Saturday midnight, the woman gave birth to a baby boy with the Arnold Chiari Type II syndrome, which leads to a malformed brain and spinal cord

• The parents say they do not want to take the baby home. “I want to give up the baby for adoption,” Sarika Ghatge (names changed) says, from her hospital bed. “He has so many medical needs. How will we fulfil them?” Ms. Ghatge gave up her job in a private firm to concentrate on her baby, and her husband Hemant works in the HR department of a hospital in Andheri and earns ₹21,000 a month 
• He says, “They have told us that the baby would need a spine and brain surgery. We don't know what to say. Everyone looks at us as if we are bad people when we say we can’t take the baby home.”

‘ASEAN seeks greater role by India’ 

• Opening new possibilities in Southeast Asia, Vietnam on Tuesday asked India to play a greater role in ASEAN’s strategic and security affairs
• Speaking at the Delhi Dialogue IX, a platform for discussion between ASEAN and India, Vietnamese Deputy Prime Minister said that India should support freedom of navigation in the South China Sea on the basis of international law and conventions.(UNCLOS) 
• “ASEAN (Association of Southeast Asian Nations) supports India to play a greater role in the political and security domain .
• The Vietnamese leader who is on a two-day visit to Delhi, is also the Foreign Minister of his country and held talks with External Affairs Minister Sushma Swaraj. His comments in support of greater role for India in Southeast Asia came even as tension is building up between India and China across the Sikkim sector

ASEAN-India trade relation

Trade & Investment 

ASEAN is India's 4th largest trading partner 

Daily Current Affairs July 2nd

Climate change impact: Sunderbans steadily losing its famed mangroves 

• Mangrove Forest Cover Changes in Indian Sundarban (1986-2012) Using Remote Sensing and GIS, a publication by the School of Oceanographic Studies, Jadavpur University, reveals that from1986 to 2012, 124.418 sq. km. mangrove forest cover has been lost
• The loss in the mangrove forest in the Indian Sunderbans is about 5.5 %. 
• “The continuation of this process in response to climate change and sea level rise poses a serious threat to the carbon sequestration potential and other ecosystem services of this mangrove forest in future"
• “This is because there is less fresh water flow and sediment supply in the western (Indian) part of the delta, so we have starvation of sediment and the rate of sea level rise is higher than sediment supply. Hence we are losing land, including mangrove forest"
• Other than being home to the Royal Bengal Tiger, also harbours a population of 4.5 million people, this study presents definite proof of the loss of land and mangrove cover.

Keep forces of darkness at bay, says Pranab 

“I am not talking of vigilantism, I am talking of: are we vigilant enough, pro-actively, to save the basic tenets of our country?…We have to reflect when we read in the papers that someone was lynched...,” the President said.

Why Bhutan is special to India

Coordinated actions 

• Giving a view of India’s role in Bhutan’s security, the MEA statement said, “In keeping with their tradition of maintaining close consultation on matters of mutual interest, RGOB (Royal Government of Bhutan) and the Government of India have been in continuous contact through the unfolding of these developments.”
• It further said that “in coordination” with the Bhutanese government, “Indian personnel, who were present at general area Doklam, approached the Chinese construction party and urged them to desist from changing the status quo. These efforts continue.
• Under the 2007 IndiaBhutan Friendship Treaty, the two sides have agreed to “cooperate closely with each other on issues relating to their national interests. Neither Government shall allow the use of its territory for activities harmful to the national security and interest of the other.”
• Under the previous treaty, India was to “guide” Bhutan on foreign and defence policies. 
• The language of the 2007 treaty is meant to respect the sensitivities of Bhutan regarding its sovereignty. But the reality is that the Indian military is virtually responsible for protecting Bhutan from the kind of external threat that the Chinese military poses

Trump takes aggressive line with friends and foes in Asia

• President Donald Trump hardened his treatment of allies and adversaries in Asia this week, pressing South Korea’s visiting leader to overhaul a landmark trade agreement with the U.S. a day after announcing a series of steps that angered China.
• Meeting on Friday with President Moon Jae-in of South Korea, Mr. Trump demanded more access to Korean markets for American cars and less of what he called “dumped” Korean steel in the U.S. — all part of an overhaul of the five-yearold free trade agreement with South Korea that he derided as “not exactly a great deal.”
• The President reaffirmed the U.S. security alliance with South Korea against the threat of a nuclear-armed North Korea. But he showed little patience for Mr. Moon’s hope for engagement with the North — something analysts said could be a future source of friction between the leaders.
• Mr. Trump’s decision on Thursday to impose sanctions on Chinese entities that do business with North Korea was interpreted by some as a shot across the bow not only to Beijing, but also to Mr. Moon, since it emphasises pressure over diplomacy
•  President’s approval of a $1.4 billion weapons sale to Taiwan provoked a sulphurous reaction from China.
• China has punished several South Korean firms in retaliation for Seoul’s decision to deploy a U.S. antimissile system. 
• The U.S. says the system is designed to deter missiles fired by the North, but China says its own security is also affected. 
• Given that South Korea is under intense pressure from the Chinese, some analysts said the harshness of Mr. Trump’s critique of South Korea on trade had caught them by surprise.

Daily Current Affairs July 1st

At stroke of midnight, India gets a ‘good and simple tax’

• Calling the GST a simpler, modern and more transparent taxation system that will do away with 500 different taxes levied across the country’s 29 States and seven Union Territories, Govt. said that it would end the spectre of tax terrorism and Inspector Raj that India’s businesses have had to endure for long.
• The GST Council chaired by Finance Minister Arun Jaitley slashed the tax rate on fertilizers from 12% to 5% and tractor parts from 28% to 18%, in a bid to make the new tax regime more farmer-friendly
• Several key aspects such as the e-waybill system, the tax collected at source (TCS) by e-commerce companies, and the dates of filing returns have been delayed.
• The Government on June 18 decided to push back the date of filing returns for July and August under GST. While the deadline for filing returns for July was earlier August 10, it was deferred to September 5. The deadline for August was moved to September 20 from September 10  
• “The decision to delay the date of filing returns suggests that the government itself has realised that the GST Network is itself not ready and that the GST Suvidha Providers also need more time “
• The e-waybill system, envisaged to provide an electronic way bill for the movement of goods across the country, met with huge opposition from industry players since the rules were considered to be too complicated to implement.

Notice to poll panel on MP Minister

• The Madhya Pradesh High Court on Friday issued a notice to the Election Commission on a plea filed by Public Relations, Legislative Affairs and Water Resources Minister Narrotam Mishra for disqualifying him from the Assembly allegedly for corruption and paid news during the 2008 Assembly polls.
• The EC on June 24 disqualified Mr Mishra under Section 10A of the Representation of the People Act, 1951

Now, a hard trek via Lipulekh

• Amid a face-off between Indian and Chinese troops along the India-China border, the Kailash-Mansarovar Yatra through the Nathu La pass in Sikkim has been cancelled
• However, pilgrims travelling through the Lipulekh pass in Uttarakhand will continue as scheduled, a government official said.
• The annual Kailash Mansarovar Yatra was flagged off earlier this month by External Affairs Minister Sushma Swaraj.
• However, China had declined permission for the first group of 50 pilgrims to proceed to Mount Kailash through the Nathu La pass

How will the Centre ensure States’ finances are not hurt?

• The GST is a destination based tax, and as such is viewed as being to the advantage of the consuming States and to the detriment of the producing States like Maharashtra, Tamil Nadu, Gujarat, Haryana, and Karnataka
• These States had raised objections to the implementation of GST, forcing the Centre to agree to a formula for compensating them in the event of a loss of revenue.
• The 14th Finance Commission advised the Centre to provide 100% compensation to States for their revenue loss after implementation of GST for the first three years. The fourth year would bring 75% compensation, and the fifth year 50% compensation.

Where are the funds?

• The GST, once implemented, will subsume almost all the cesses levied at the moment, including Swachh Bharat Cess and Krishi Kalyan Cess.
• Other cesses like the education cess on imported goods and the cess on crude oil will remain under GST.
• However, the government needs extra revenue to compensate the States, and so the GST Council decided to impose additional cesses for five years on certain goods over and above the highest tax bracket of 28%.
• These goods on which cess will be levied include tobacco products,coal, motor vehicles, which include all types of cars, personal aircraft, and yachts
• These additional cesses, however, will be removed after five years

GST will curb tax avoidance: Jaitley

• Finance Minister Arun Jaitley said the rollout of the Goods and Services Tax(GST) will ease inflation,make tax avoidance difficultand boost GDP growth
• He said the implementation of the landmark unified tax should beseen as the beginning of a new journey that will expand the country’s economic horizon.
• He further said 17 transaction taxes in States and the Centre and 23 cesses would be subsumed in the GST. An assessee will have to file only one return.
• “Inflation will come down, tax avoidance will be difficult, India’s GDP will be benefited and extra resources will be used for welfare of poor and weaker section,”

GST-Advantages & Drawbacks

• The benefit of the GST system is that essentially it subsumes all taxes into one. This means that whatever activity you are in, there is only one indirect tax that is applicable. You do not have to worry about the different forms of taxes that are applicable for your activity. That instils a degree of certainty in the system and it also eases the complexity of getting yourself registered
• The second advantage is that it has done away with levies on inter-State transactions — which means you are really opening up the market.
• The third is that GST will hopefully remove the cascading of taxes which was endemic in the previous system

Drawbacks

• The first is that it is extremely complex because of the number of tax rates being levied and, second, because each State is being treated as a separate tax jurisdiction.
• Because of this, it introduces additional complexity in the GST system which, in a different form of GST, would not have been there.
• So although you are not going to be worrying about 21 different taxes, you might have to worry about the complexity of a single tax rate across the country, which can get quite demanding.
• The issue there is the complexity of the tax system really depends on the range of goods and services a particular enterprise is transacting in. If you haverelatively few goods and services you are transacting in either as a buyer or a seller, then it works quite well.
• But if you are transacting in a large number of goods and services, then the system can get quite complex.