Monday 22 April 2019

TAXATION UPDATES 22.04.2019





GOVT EXTENDS DEADLINE FOR GST SALES RETURN FOR MARCH UNTIL APR 23

The government has extended the last date for filing summary sales return, GSTR-3B for March month by three days until April 23 Due date for filing GSTR-3B for the tax period March 2019 has been extended to April 23, 2019, a ticker on GST portal 'gst.gov.in' said.
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MARCH SAW INCOME TAX DEPARTMENT GO ON AN OVERDRIVE

Every year in March, the income tax department chases tax collections in order to fulfil targets for the financial year. But this year the department had kicked up the collection drive a notch. According to multinational companies, tax consultants and chartered accountants, the taxman has been uncharacteristically aggressive. In the last quarter of every financial year, we are prepared for tax demands, recovery notices, transfer-pricing orders, etc. But this year the number of notices, calls and follow-ups far exceeded what was anticipated, said a compliance officer at an MNC, who did not want to be named. The department adopted at least six different out of the ordinary methods to recover tax dues. Despite these efforts, the Central Board of Direct Taxes (CBDT) is staring at a shortfall of direct tax collection of 60,000-80,000 crore, a tax officer said, declining to be named. CBDT is yet to announce the final numbers. The direct tax collection target for fiscal year 2019 was set at 12 trillion. A Mumbai-based MNC, which is headquartered in the US, was asked to cough up 60% of the tax demand. And they did pay up fearing harassment, said a tax consultant. Another pharmaceutical company was levied a tax demand of over 70 crore. Sick of repeated calls from the taxman, the firm decided to pay up a portion of that demand. According to The Income-tax Act, 1961, the assessee has to pay 20% of the tax demand pending an appeal. The pressure this year was to fulfil a huge target. It was mostly on two grounds: to chase the demands of this year and to open previous years’ assessments. The taxman this year has sent out notices to many mid-sized MNCs for re-opening of previous assessments going back to six years, said Girish Vanvari, founder, Transaction Sqaure, a tax, regulatory and business advisory firm. The taxman this year also used a rare provision to collect dues directly from bank accounts. This provision in the I-T Act allows the tax authorities to freeze the bank accounts of taxpayers and deduct money directly from these accounts. Previously, this section was used only for wilful defaulters. In February and March, several letters were sent out to banks to deduct money from the account holder (a suspected tax evader) and pay directly to income tax department. This was also done in cases where the tax demand was not appealed or the upfront payment of 20% was not made, said Amit Maheshwari. In some cases, taxpayers were called to pay up, or else their bank accounts would be frozen, he added. In addition, the cut-off period for passing final international taxation orders was slashed. Typically, draft orders are passed in December and orders by the Dispute Resolution Panel confirming the order and final orders are passed by June. This year the timelines were reduced to the extent that the final orders were passed by February. In some cases assessees were not given the final assessment orders before the tax demands were raised, said a lawyer who heads the tax practice at a large consultancy. The number of calls and notices raising tax demands also increased manifold over previous years. In some cases, the assessing officers have been making persistent demands on taxpayers, with short deadlines that left assessees with little time to appeal. The assessment orders gave taxpayers only seven days to meet the demands instead of the prevalent 30 days. One such public case concerned Uber India Systems Pvt. Ltd which filed a writ petition in the Bombay high court contesting the demand notice, which had asked Uber to pay up in seven days. The high court, in an order on 2 May 2018, ruled that Uber had 30 days to appeal against the tax demand. The company has appealed and the matter is now pending before the income tax tribunal.
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SALE OF ASSETS OF NIRAV MODI’S US FIRMS FETCHES $10 M, BUT PNB CAN’T REJOICE

According to US court documents accessed, after holding public auctions for the three entities’ diamond and jewellery inventories, and their patents and trademarks, the trustee has also undertaken private sales of assets While the first three public auctions raised about $5.7 million the private sales authorised so far have raked in about $4.5 million. But aside from the fact that the sale value of the assets appears rather small in contrast to the $2-billion fraud at Punjab National Bank, it is unlikely that PNB will receive a meaningful recovery from the US bankruptcy cases, say experts. On August 24, 2018, a US court approved the trustee’s proposed procedures for selling assets free and clear of all liens and other interest, by public sales. The first public auction of the US firms’ trademarks and patents and associated jewellery comprised 12 lots of intellectual property (IP). ‘Diamonds Are A Girl’s Best Friend’, one of the well-known domain names and trademarks, fetched $50,000. Patent rights for the exclusive brands ‘112 Facet’ and ‘Patriot Star’ were sold for $25,000 and $280,000 respectively, along with associated inventory. Subsequent public sales of inventories of diamond and jewellery brought in about $4.7 million. But the value of these inventories in the book (book price as disclosed in the court documents) was nearly twice — $9.1 million — implying that the sales had happened at a substantial discount to the book price. The examiner in the US Bankruptcy Court, appointed last year to probe Nirav Modi’s ties with the three US entities, had identified tens of millions of dollars of purported diamond sales by the US companies to various shadow entities, where payment could be traced to proceeds from the alleged PNB fraud in India. The investigation had also corroborated that transactions were used to inflate diamond inventory and accounts receivables artificially, to justify the need for Letter of Undertaking (LoU) financing. After he had completed the public auctions, the trustee was authorised to conduct private sales. The trustee undertook private sales to companies such as Macy’s Inc, Unique Designs, Simplexdiam Inc, Martin V Marten and Diamond Traders International. Such sales authorised by the court have amounted to about $4.5 million so far. Chapter 11 Trustee Levin’s recent successful private sales benefit the Firestar Diamond Inc Chapter 11 estate as they are a more efficient and less expensive method of monetising the assets. These cases were filed in late February 2018, nearly 14 months ago, but in many ways they are just warming up with the arrest of Nirav Modi and filing of the recent RICO (Racketeer Influenced and Corrupt Organisations Act) suit, said Seth R Freeman. He added that complex fraud-related bankruptcy cases, such as Firestar Diamond and DC Solar Solutions, are very expensive to administer. He recently served as the chief restructuring officer in the DC Solar bankruptcy involving a $2-billion alleged fraud. It is vital for the Chapter 11 debtors to be able to generate cash to finance the case and ideally provide a distribution to the creditors, Freeman explained. So, will PNB get any monies out of these sales made by the trustee? Unlikely, said Freeman. While the examiner in Firestar Diamond demonstrated the connection with fraud against PNB, given the secured debt and priority of claims in the US bankruptcy, I think it is unlikely that PNB will receive a meaningful recovery from the US bankruptcy cases. However, the facts developed in the US cases may provide support for third-party claims and other recoveries that benefit PNB in India, he added. The examiner appointed to probe Nirav Modi’s ties with the three US entities had revealed that they were directly involved in transactions related to the LoU fraud at PNB.
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REALTORS APPEAL TO HOUSING MINISTRY TO CUT GST RATE

The Association of Certified Realtors of India (ACRAI) has appealed to the housing ministry to reduce the 18% goods and services tax (GST) levied on brokers on the brokerage they earn from builders on each transaction. We have appealed to the ministry to reduce GST on our services from 18% to 5% to help us overcome distress and give better job opportunities to our community in coordination with the GST Council, said Ravinder Aggarwal. Additionally, in a letter to the GST Council, brokers have appealed that real estate agents be exempted from GST on services provided for affordable housing. Brokers said they were grappling with a slowdown in sales and finding it difficult to survive as builders refused to pay GST levied on sales. No builder is ready to pay GST on the brokerage The channel partners are already squeezed; this is just an additional burden, said Irshad Ahmed. The bodies representing brokers, including ACRAI and the National Association of Realtors, had also appealed to the central committee to revoke the 5% penalty on brokers. The finishing and delivery of projects is not in our hand. We are only a marketing arm and dependent on the information provided by the developers and authorities, said Aggarwal. The service tax levied on real estate agents’ services was increased to 14% from 12% in June 2015, just before GST was levied on realtors. The GST rate applicable for all services rendered under the heading ‘real estate services’ on a fee or commission basis or contract basis and for services by way of renting of residential dwelling for use as residence is exempt from GST. Other rental services attract GST at 18%.
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AHMEDABAD EAST SEAT HAS MAXIMUM 'CROREPATI' CANDIDATES IN GUJARAT

East Lok Sabha constituency has the highest number of 'crorepati' candidates in Gujarat, while Congress candidate from Mehsana A J Patel is the richest one, an analysis of election affidavits shows. The Association for Democratic Reforms (ADR), an election watchdog, said in a report that six out of 26 candidates from Ahmedabad East have declared that they possess assets worth Rs one crore or more. It is followed by Gandhinagar, where five out of total 17 candidates are worth Rs one crore or more. There are a total of 75 'crorepati' candidates around 20 per cent of the total 370 candidates analysed by the ADR. Among the candidates from Ahmedabad East, BJP's Somabhai Patel is the richest candidate with Rs 7.46 crore-worth assets, followed by BSP's Ganesh Vaghela at Rs 7.09 crore. Congress' Geeta Patel has declared assets of Rs 4 crore. BJP president Amit Shah, who is contesting from Gandhinagar seat, has declared assets of over Rs 40 crore. His Congress rival C J Chavda has declared assets of over Rs 12 crore. K L Desai, an independent, has declared assets of Rs 18 crore. But the richest of them all is A J Patel, Congress candidate from Mehsana, who has declared assets of Rs 69 crore. He is followed by Chandrakant Patil, BJP candidate from Navsari (Rs 44 crore), Shardaben Patel, BJP candidate from Mehsana (Rs 44 crore), BJP candidate from Jamnagar Poonamben Maadam (Rs 42 crore) and Amit Shah (Rs 40 crore). When it comes to liabilities, Ramesh Dhadhuk, BJP candidate from Porbandar, has taken the top spot. He has declared liabilities of Rs 21 crore against the assets of Rs 35 crore, the data shows.
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MUMBAI HC GRANTS BAIL TO MAN HELD FOR CIRCULAR TRADE, FAKE ITC CLAIM

The Bombay High Court has granted bail to a person, arrested on charges of circular trading and fictitious claim of input tax credit under the goods and services tax (GST) regime. The court also ruled that no coercive action would be taken against the person, while posting the next hearing on July 8, when charges of fake invoices and circular trading would be taken up. The order may have repercussions for over a dozen of people arrested under similar charges across the country, Abhishek Rastogi, said. The petitioner, who has a business in MS ingots, had filed a plea in court for personal liberty enshrined in the Constitution.
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SILVER JEWELLERY EXPORTS CRASH AS NIRAV MODI, MEHUL CHOKSI FLEE COUNTRY

The exit of Nirav Modi and Mehul Choksi from the Indian market has resulted in a sharp fall in India's silver jewellery exports with an over 75% decline reported during the 2018-19 financial year. As a result, during the last financial year, silver exports plummeted to $838 million from nearly $3.4 billion in 2017-18, data available with the Gems & Jewellery Export Promotion Council (GJEPC) showed. Senior functionaries of the trade body confirmed that the decline was due to the exit of the uncle-nephew duo after the alleged fraud was unearthed. The maximum impact on exports was on the Surat Special Economic Zone, government officials told, although data was not available immediately. There are also allegations that the exports undertaken by fugitives Modi and Choksi was largely on paper as there has not been a shift in business to other players in the Indian market. The over $2.5 billion fall in silver exports is one of the key factors behind the over 3% decline in gems and jewellery exports although GJEPC vice-president Colin Shah put the blame on delay in GST refunds and liquidity problems for the industry's woes. Traditionally, the sector has been a key contributor to India's exports. Last year, export of gold medallions and coins witnessed a 55% crash, from close to $2 billion in 2017-18 to $876 million. This is being attributed to the Director General of Foreign Trade's decision to ban the export of 24-carat gold coins and medallions on repeated complaints of misuse by exporters, who were allegedly indulging in circular trading of this item. Following the change in rule, exports have virtually come to a standstill as there is no demand for coins and medallions of 22 or 18 carat, Shah said.
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INDIA NOT A TARIFF KING, CAN PROTECT SPECIFIC SECTORS UNDER WTO: EXPERTS

India is not a 'tariff king' and it has all the right to take appropriate measures to protect the interest of specific sectors like agriculture, international trade experts have said. Rejecting the US allegation that India's import duties are one of the highest in the world, experts said that several developed countries and regions including Japan, South Korea, European Union, and America maintain extremely high tariffs primarily on agriculture products. The US President Donald Trump has repeatedly claimed that India is a tariff king and imposes tremendously high import duties on American goods. Biswajit Dhar, said that the US allegations are completely unfounded. In fact, the US import duties on several of their products are quite high such as on tobacco it is about 350 per cent and 164 per cent on peanuts. They too maintain reasonably high duties, Dhar said. Sharing similar views, Rakesh Mohan Joshi said that the US allegations are not correct and in fact, they should rationalise their duty structure being a developed nation. Trade Promotion Council of India Chairman Mohit Singla said that the assertion of the US is not factually correct. He said that the allegation of Trump that India is a tariff king does not hold true and is unjustified. Federation of Indian Exports Organisation (FIEO) said that product-specific high tariffs, like 150 per cent on alcoholic beverages, 100 per cent on coffee, and 60-75 per cent on automobiles have made India a villain in the eyes of the US President. India's average WTO bound tariff is 48.5 per cent while average applied tariff is 13.4 per cent. The wide gap between the two clearly shows that India is not a tariff king else it would have pushed the applied tariff very close to the bound rates, Sahai said.
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4,690 CASES FILED OVER POLL CODE VIOLATIONS IN TAMIL NADU TILL APRIL 19

For the participants in Y S Jaganmohan Reddy’s political campaign, achhe din has arrived. The staff has been given paid holiday for a month. While the junior staff gets paid holiday only, some senior employees have been offered holiday at a destination of their choice. Only a core team of about 20 people has been retained to continue working with Reddy on the final details. They have been promised good rewards if the results are good. During an unprecedented hearing in the Supreme Court on Saturday in which the chief justice of India heard a case of grave national importance, Attorney General K K Venugopal lamented that he had been under attack from a lawyer for defending the government. Venugopal said he was an officer of the court and was simply assisting the court in his capacity as government counsel. His comments led to speculation about the identity of the lawyer who had attacked him. While many names came up, the consensus in the courtroom and outside was that it was either senior advocate Indira Jaising or public interest lawyer Prashant Bhushan. Bhushan and the AG are locked in a legal battle after the former alleged that the AG had misled the court on Rafale. This prompted Venugopal to move a contempt petition against Bhushan. A report released by the Election Commission shows political parties in Tamil Nadu, especially the big two, are locked in some sort of a contest when it comes to committing the maximum number of violations of the model code of conduct. Of the total 4,690 violations reported in the state till April 19, around 1,450 cases were reported against the ruling All India Anna Dravida Munnetra Kazhagam (AIADMK), while 1,694 cases were reported against the Dravida Munnetra Kazhagam (DMK). The smaller parties in the state also tried their best with 1,546 cases against them during the period. Most of the violations reported related to defacement of property. Almost 1,368 cases were reported from the southern part of the state, including from Madurai, Theni, Ramanathapuram, Sivaganga, Thoothukudi and Kanniyakumari.
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OFFICER SUSPENDED FOR CHECKING PM'S CHOPPER SENT BACK TO KARNATAKA

An Election Commission general observer, who was suspended for checking Prime Minister Narendra Modi's helicopter in Odisha's Sambalpur in violation of norms for dealing with SPG protectees, has been sent back to Karnataka. He is a 1996 batch IAS officer of Karnataka cadre. The Commission had last week suspended its general observer for Sambalpur in Odisha for violating its instructions that SPG protectees should not be checked. Mohammed Mohsin had tried to check some luggage in the convoy of the Prime Minister on Tuesday last.
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VVIP CHOPPER CASE: DELHI COURT EXTENDS TILL MAY 3 JUDICIAL CUSTODY OF DEFENCE AGENT

A Delhi court on Monday extended till May 3 the judicial custody of Sushen Mohan Gupta, an alleged defence agent arrested in the AgustaWestland VVIP choppers scam case. Special Judge Arvind Kumar granted the interim relief to Gupta, who was arrested by the Enforcement Directorate under the Prevention of Money Laundering Act. The court had dismissed his bail plea previously.
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WE CHANGED PUSILLANIMOUS APPROACH OF CONGRESS ON TERROR: MODI

Narendra Modi Monday said his government took bold steps to counter terror attacks in contrast to the pusillanimous approach adopted by the earlier Congress-led regimes while dealing with them. Modi's remarks at a poll rally here in Nashik district of Maharashtra came a day after a terror attack in Sri Lanka killed 290 people in a series of eight blasts that tore through churches and luxury hotels in the island country. What did the then Congress-NCP government do? It held condolence meetings and expressed grief. They went about crying across the world, saying Pakistan did this and Pakistan did that. But what did we do? We changed that pusillanimous policy, Modi said. Modi accused the Congress of destroying the state- run HAL and added his government increased defence production under the 'Make in India' programme.
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MAFIA RAJ UNDER MAMATA BANERJEE'S RULE IN WB: AMIT SHAH

Lashing out at West Bengal Chief Minister Mamata Banerjee for allegedly running a mafia raj in the state, BJP president Monday claimed that the state has topped the chart in cow smuggling and become a safe haven for infiltrators. Urging the people to ensure that the BJP wins more than 23 out of 42 seats in the state, Shah said it would ensure that the syndicate raj ends within 90 days in Bengal. In West Bengal, 'syndicate' means the business run by persons allegedly enjoying political patronage, who force promoters and contractors to buy construction materials, often of inferior quality at high prices. Mamata Banerjee led TMC is running a mafia raj in the state. The state has achieved the distinction of topping the chart in cow smuggling and turning the state into a safe haven for infiltrators, Shah claimed. he accused Banerjee of making West Bengal a bankrupt state where only her relatives and TMC ministers have flourished.
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BJP MLA GETS LIFE TERM IN 22-YEAR-OLD MURDER CASE

The Allahabad HC on Friday sentenced BJP MLA from Hamirpur Ashok Singh Chandel and nine others to life term in a 22-year-old shootout in which five members of a family were killed in Bundelkhand's Hamirpur. The state government as well as the complainant had challenged the decision of the district and sessions judge. On January 26, 1997, a minor altercation between BJP netas Shukla and Chandel had led to a shootout in Hamirpur in which five people, including Shukla's two older brothers Rakesh and Rajesh, nine-year-old nephew Ambujh, and two others Ved Nayak and Srikant Pandey had died. Five more, including two children, had sustained bullet injuries in the shootout. The FIR lodged named Chandel and the others. Subsequently, the police after investigating the matter, filed the chargesheet in the case.
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FOREIGN SECRETARY VIJAY GOKHALE TO VISIT CHINA FOR TALKS WITH CHINESE FM

Vijay Gokhale starts his two-day visit to China on Sunday during which he will hold talks with Chinese Foreign Minister Wang Yi as both countries grapple with a host of issues, including Beijing’s continuous attempts to block efforts to list Jaish-e-Mohammed’s chief Masood Azhar as a global terrorist. Gokhale will be visiting China for regular consultations, the Indian Embassy here said on Saturday. He is due to meet China’s State Councillor and Foreign Minister Wang Yi on April 22. His schedule here is being worked out, it said. The visit of Gokhale, previously India’s Ambassador to China before he took over as Foreign Secretary last year, is taking place amid close engagement between India and China following the February 14 Pulawama terror attack carried out by a Jaish-e-Mohammed (JeM) terrorist in which 40 CRPF personnel were killed. Following the suicide attack, the US, the UK and France moved a proposal under the 1267 Al Qaeda Sanctions Committee of the UN Security Council (UNSC) to designate Azhar as a global terrorist. China stalled it for the fourth time by putting a technical hold on the resolution, a move India termed as disappointing. One of our differences is how to look at the BRI. The Indian side has their concerns. We understand that and that is why we have stated clearly on many occasions that the BRI including the CPEC is only an economic initiative and it does not target any third country and has nothing to do with the sovereign and territorial disputes left from history between any two countries, he said.
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ISIS MODULE CASE: NIA CONDUCTS SEARCHES AT TWO LOCATIONS IN HYDERABAD

The National Investigation Agency (NIA) conducted searches at two locations Saturday in connection with an Islamic state module case, police said. The raids which began in the morning were still underway, they said. In August 2018, the NIA had arrested two alleged ISIS sympathisers --Mohammed Abdullah Basith and Mohd Abdul Qhadeer -- from the city as part of its larger probe into Indian youngsters being radicalised to carry out terror strikes on behalf of the banned international outfit. The fresh raids were being carried out in connection with this module after a supplementary charge sheet was filed against them in February this year and based on fresh inputs, police added. NIA teams are conducting searches at two places in connection with an ISIS module case, a senior police official of the Cyberabad Police Commissionerate told PTI.
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JKLF CHIEF YASIN MALIK ON HUNGER STRIKE AGAINST NIA CUSTODY, HIS CONDITION VERY BAD, SAYS FAMILY

JKLF chief Yasin Malik's family on Saturday alleged that he was very ill after he went on a hunger strike to protest against his illegal detention by the National Investigation Agency (NIA). A Delhi court had on April 10 sent Malik to NIA custody till April 22 in connection with a terror funding case. Malik's family said they were not allowed to meet the separatist leader and that he has been in a hospital for the past four days. We had gone to Jammu to meet him (Malik), but when we reached there in the evening, we heard that he has been taken to Delhi. So we returned without meeting him. Since then, we are only in touch with his lawyer. The lawyer, Raja Tufail, was also not allowed to meet Malik, they alleged. The family said Tufail had to get court permission to meet the JKLF leader on Saturday. The JKLF will hold a two-day hunger strike in Islamabad on April 25 and 26, and stage a five-day dharna starting from April 28 outside the Indian Embassy in London, the spokesman said.
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BAILOUT FOR PAKISTAN COULD PUT YOUR FUNDS AT RISK, INDIA WARNS IMF

India and some other nations have cautioned the International Monetary Fund (IMF) about fresh bailout for Pakistan at a time when it is under the Financial Action Task Force's (FATF) scanner for its serious failure to crack down on terror funding During recent meetings in Washington, Indian officials are learnt to have warned of possible embarrassment for the multilateral agency as they made the point that Pakistan was already 'grey listed' and faced a high probability of being in the 'black list' which will severely restrict its financial transactions with other nations. The word of caution, as India hinted at IMF funds being at risk, came ahead of next month's peer review of Pakistan at FATF, sources said. Indian officials had attended the annual meetings of IMF and the World Bank with FATF ministerial meet also coinciding with it. At the same time, India's neighbour, which is seen to be harbouring a range of terrorists such as Jaish-e-Muhammed chief Masood Azhar, is seeking an urgent $8-12 billion IMF assistance to help it tide over its latest current account crisis, with the deficit widening six-fold to over $18 billion in the last three years. If the loan proposal goes through, it will be Pakistan's 22nd loan from the IMF.
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BJP QUESTIONS RAHUL GANDHI’S CITIZENSHIP AFTER RETURNING OFFICER POSTPONES SCRUTINY OF NOMINATION PAPERS

The Bhartiya Janata Party (BJP) on Saturday questioned the citizenship and educational qualifications of Congress President Rahul Gandhi. This comes just hours after the returning officer postponed the scrutiny of nomination papers submitted by the Congress President following the objections raised by an independent candidate from Amethi. GVL Narasimha Rao said: I think it’s a matter of great surprise that the objections that have been raised regarding Rahul Gandhi’s citizenship haven’t been answered. He further said that Gandhi’s legal representative did not have answers to questions raised by other candidates on details given in his nomination. Rahul Gandhi’s name has been shown to be listed as a British citizen in documents related to a company in the UK. Was Rahul Gandhi a British citizen? Narasimha Rao asked. The lawyer of the independent candidate said that Rahul Gandhi has declared himself a foreign citizen in the certificate of incorporation of a company registered in the UK. On the basis of a certificate of incorporation of a company registered in the UK, he (Rahul Gandhi) declared himself a UK citizen. A non-citizen can’t contest polls here, he said. He further said that there were no details on the assets and profits of the company mentioned in the affidavit. There are a number of mistakes in his educational qualification certificates The original educational certificates should be presented so that his (Rahul Gandhi) claim can be established, the lawyer demanded. The legal team of the Congress president has asked some time to counter the objections.
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US WINS WTO RULING AGAINST CHINA’S GRAIN-IMPORT QUOTAS

The United States won a World Trade Organization (WTO) ruling on Thursday against China's use of tariff-rate quotas for rice, wheat and corn, which it successfully argued, limited market access for US grain exports. The case, lodged by the Obama administration in late 2016, marked the second US victory in as many months. It came amid US-China trade talks and on the heels of Washington clinching a WTO ruling on China's price support for grains in March. A WTO dispute panel ruled on Thursday that under the terms of its 2001 WTO accession, China's administration of the tariff rate quotas (TRQs) as a whole violated its obligation to administer them in a transparent, predictable and fair basis. TRQs are two-level tariffs, with a limited volume of imports allowed at the lower 'in-quota' tariff and subsequent imports charged an out-of-quota tariff, which is usually much higher. The administration of state trading enterprises and non-state enterprises' portions of TRQs are inconsistent with WTO rules, the panel said. Australia, Brazil, India, and the European Union were among those reserving their rights in the dispute brought by the world's largest grain exporter. In a statement, US Trade Representative (USTR) Robert Lighthizer and Secretary of Agriculture Sonny Perdue welcomed the decision, saying China's system ultimately inhibits TRQs from filling, denying US farmers access to China's market for grain. If China's TRQs had been fully used, $3.5 billion worth of corn, wheat and rice would have been imported in 2015 alone, it saidciting US Department of Agriculture estimates. China’s Ministry of Commerce said it regrets the panel's decision and that it would earnestly evaluate the report. China would handle the matter appropriately in accordance with WTO dispute resolution procedures, actively safeguard the stability of the multilateral trading system and continue to administer the relevant agricultural import tariff quotas in compliance with WTO rules, a statement said.
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ISIS ROLE SUSPECTED IN SRI LANKAN TERROR ATTACKS; REVENGE FOR NEW ZEALAND CHURCH ATTACKS PROBABLE MOTIVE

India will offer all possible assistance to neighbouring Sri Lanka in probing ghastly terror attacks that rocked the island on Sunday and handling aftermath of the strikes that killed over 200, even as allegations including role of Islamic State and revenge for New Zealand mosques flew thick and fast over the motive behind return of terror to Colombo after a decade. The serial terror attacks, one of the worst in South Asia, sent alarm bells ringing in Delhi which in the past grappled with civil war in Lanka until it came to close in 2009. Sources here claimed that this is a typical Islamic State attack – way the blasts have been synchronised and orchestrated. The Modi government is working closely with Lanka on the matter, sources indicated. The Islamic State is suspected because of the nature of the attack, but thorough probe is required on type of explosive used, and the kind of detonator used. The sites of the attack – churches – was chosen to attract international attention. A coordinated blast on Easter will have huge global impact. While Sri Lanka has a history of LTTE-led terror sources described it as a matter of the past and alleged that a local module of ISIS seeking revenge for the New Zealand mosque attack could be behind Sunday’s episode. LeT has also been trying to recruit for past few years, sources alleged. There are also reports that the NTJ (National Thowheeth Jama'ath) was planning to carry out suicide attacks targeting prominent churches as well as the Indian high commission in Colombo earlier this month. The High Commission is located a prime location in Colombo and close to sea front. NTJ is a radical Muslim group in Sri Lanka that came to notice last year when it was linked to the vandalization of Buddhist statues. While Indian officials and security experts were engaged in brainstorming on motive and group behind the attack in the key neighbouring state, several other conspiracy theories are doing rounds. Colombo based sources alleged that Buddhist-Christian tensions have been simmering over reports of conversion and the attack could be a fallout of that. Other allege that Opposition could be behind the attack to discredit PM Ranil Wickremasinghe. Prime Minister Narendra Modi held telephonic conversations with the Lankan President and the Prime Minister and conveyed heart-felt condolences on his own behalf and on behalf of all Indians at the loss of over one hundred and fifty innocent lives in today’s terrorist attacks in Sri Lanka. In fact the PM spoke to the Sri Lankan President, even as the Sri Lankan President is currently in Singapore. India has always opposed and rejected terrorism in all its forms and manifestations, and has urged concerted action by the international community against terrorism, including cross-border terrorism. There can be no justification whatsoever for any act of terror. We call for perpetrators of such ghastly and heinous act and those who provide them support to be brought to justice expeditiously, MEA noted in a statement within hours of the serial terror strikes reminiscent of 26/11.
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VVIP CHOPPER DEAL CASE: COURT DISMISSES ALLEGED DEFENCE AGENT'S BAIL PLEA

A Delhi Court Saturday dismissed the bail plea of Sushen Mohan Gupta, an alleged defence agent arrested in the AgustaWestland VVIP choppers scam case. Special Judge Arvind Kumar refused to grant the relief to Gupta whose judicial custody expires on Saturday and an order is yet to be passed on his custody. He was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). The probe agency had said Gupta's role in the case came to light on the basis of disclosures made by Rajiv Saxena, who has turned approver in the case after he was deported from the UAE and arrested by the agency. The ED had opposed Gupta's bail plea saying there was a likelihood of him fleeing the country like 36 businessmen, including Vijay Mallya and Nirav Modi, who had criminal cases against them. Gupta has sought the relief on the ground that the agency has already completed the investigation and filed a charge sheet in the case. In his bail application, the accused had told the court that ED's contention of the flight risk can be rejected considering his past activities, where he joined the investigation as and when summoned. ED's special public prosecutors D P Singh and N K Matta had earlier countered Gupta's claim that he had deep roots in society, saying, Mallya, Lalit Modi, Nirav Modi, Mehul Choksi and Sandesara brothers (Sterling Biotech Ltd promoters) had deeper roots in society yet they left the country. There are such 36 businessmen who fled from the country in the last few years. The ED had also accused Gupta of influencing the witnesses in the case and told the court that he also tried to destroy the evidence in the case.
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SPICEJET, AIR INDIA STEP IN TO CLEAN UP AFTER JET AIRWAYS

Budget airline SpiceJet Ltd and national carrier Air India Ltd have stepped in to stabilize India's aviation industry and ease the pain from wage losses caused by Jet Airways (India) Ltd’s descent into insolvency and operational shutdown. SpiceJet is making all possible efforts to soften the blow to the aviation industry caused by Jet’s suspension of operations on Wednesday, said the airline’s chairman and managing director, Ajay Singh. That includes offering employment to those who have lost their jobs and scaling up the inventory of seats by adding new planes, in turn helping keep ticket prices stable. Air India has, on its part, volunteered to temporarily use some of Jet Airways’ grounded planes on key international routes. Other airlines too are in talks with aircraft lessors to use Jet’s grounded planes. As we expand and grow, we are giving first preference to those who have recently lost their jobs due to the unfortunate closure of Jet Airways. We have already provided jobs to more than 100 pilots, more than 200 cabin crew and more than 200 technical and airport staff. We will do more, Singh said on Friday. Jet Airways' grounding has resulted in a big gap in aviation capacity—impacting fares, passenger convenience and travel experience—and has added to the financial woes of lenders, aircraft lessors and other service providers. Other airlines have come forward to try and bridge the gap in the air travel market but a realignment of slots at airports and other operational issues is a complex affair.
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SHIV SENA ASKS GOVT TO TAKE OVER JET AIRWAYS

The Shiv Sena on Monday urged the NDA government to take over the temporarily grounded private carrier Jet Airways and save its staff from losing their jobs. It asked Prime Minister Modi to take a cue from the foresight shown by former PMs Jawaharlal Nehru and Indira Gandhi in nationalising insurance and airline companies. Speaking about the impact of the temporary shut down of the 25-year-old airline, the Sena, in an editorial in party mouthpiece 'Saamana', said the curse of those rendered jobless would be more powerful than that of a 'sadhvi'. It was apparently referring to remarks made by BJP leader Sadhvi Pragya Singh Thakur, an accused in the Malegaon blast case, who recently claimed that senior police officer Hemant Karkare died during the 26/11 Mumbai terror attacks as she cursed him for torturing her. The cash-starved Jet Airways ceased all its operations temporarily last week. The airline had sought a Rs 400 crore emergency fund from its lenders to whom it already owes over Rs 8,500 crore, but was refused as it was not ready to offer more collaterals. Such incidents underscore the foresight of Pandit Nehru and Indira Gandhi and their insistence on nationalisation of insurance and airline companies in the country. Prime Minister Narendra Modi needs to show similar foresight in the matter of Jet Airways, the Sena said. Our demand to the government is that it take over Jet Airways and save its staff from getting unemployed, said the Uddhav Thackeray-led party, which is an ally of the BJP at the Centre and in Maharashtra. The Sena said it has presented issues of the airline's staff before the government. The curse of the staff that is now unemployed is more powerful than that of a 'sadhvi'. The government could have avoided such a situation, it said.
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CONGRESS REPORT SAYS RIVALRY WITH CHINA CERTAIN, PITCHES IDEAS TO MANAGE IT

A new report on national security that the Congress Party released on Sunday in Delhi provides an insight into how key relationships with China and Pakistan will be managed if a Congress-led government comes to power next month. Future strategic rivalry between China and India is a certainty, and a successful trading partnership cannot overcome the reality of this competition, says the report. To break the deadlock in border talks, the report suggests: Ongoing border talks are achieving no major breakthroughs and focus of negotiations must shift to accurately defining the Line of Actual Control (LAC). This too is a complicated task but if successful, will go a long way in preventing the occurrence of (extended patrol clashes) like Depsang, Chumar, and Dokalam (sic). In fact, Beijing has steadfastly resisted defining the LAC It has dragged its feet even on the preliminary step of exchanging maps marked with each side’s perception of the LAC’s alignment. The report cites areas of cooperation with China, including shared development goals, increased trade and common environmental concerns. It proposes that, depending upon China’s willingness to show an understanding of our core interests, India could some day offer access to China through Indian ports [to the Indian Ocean]. This would constitute a major reversal of New Delhi’s current unwillingness to participate in, or even discuss, the Belt and Road Initiative with Beijing. However, discussing the report after its release, Congress leader P Chidambaram dismissed the drum beating and chest thumping that had come to characterize all discussions about Pakistan. War is not an option. Anyone who says otherwise is misleading the Indian people. We build strong armies not to win a war but to avoid a war, he said. Chidambaram said the war-talk that one hears in Delhi is far removed from the radar of rural India. He said: There are limits to our economic capacity and that has to be carefully apportioned between defence of India and development of the people. While not ruling out talks with Islamabad, Chidambaram said: We must find a way to normalise relations with Pakistan. If we need to change behaviour of Pakistan we need to change our behaviour towards them. Asked what changes he would propose, Chidambaram admitted We have tried pretty much everything, but that does not mean we do not go on trying. He said the two sides had already come close to solutions on the Sir Creek and Siachen disputes, while the most difficult J&K dispute could be tackled at the end. On Afghanistan, the Congress will continue New Delhi’s unbending opposition to the Taliban, even though the US and Russia are now in dialogue with the insurgent group. India has always supported an Afghan-led and Afghan-owned process of peace and reconciliation [but] must not compromise on its position and get drawn into supporting the Taliban, says Hooda’s report. To tackled the J&K insurgency, Hooda argued for simultaneously addressing its two distinct centres of gravity: the Pakistan sponsored dimension and internal Kashmiri alienation. We have had separate military and political strategies. We need a combined and comprehensive politico-military strategy. There must be a well-crafted information campaign [to overcome the] feeling in Kashmir that the state is at war with its own people, said Hooda.
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AAP-CONGRESS ALLIANCE| TIE-UP JUST IN DELHI NOT POSSIBLE, SAYS MANISH SISODIA

The Aam Aadmi Party on Saturday said an alliance just in Delhi is not possible after the Congress refused to have a tie-up anywhere else with it. Manish Sisodia said that giving three seats to the Congress in the national capital would mean giving three seats to the BJP, when asked his opinion on the 4:3 seat sharing formula proposed by the Congress. He said the Congress first proposed 6:3:1 seat sharing formula to the AAP in Haryana where six seats would be for Congress, three for Janayak Janata Party and one seat for AAP. Our decision to form an alliance with the Congress was to stop the Modi-Shah duo, he said. Senior party leader Sanjay Singh said they have agreed to all the seat sharing arrangements that the Congress proposed but even then the grand old party backtracked. After discussions with our alliance partner in Haryana JJP we agreed to it but the Congress refused and said they can’t give more than two seats to the JJP and proposed 7:2:1 formula, said Singh, who was negotiating with the Congress.
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THERE HAS NEVER BEEN A WEAKER PM: PRIYANKA GANDHI’S BIG ATTACK ON MODI

Priyanaka Gandhi Vadra Saturday lashed out at the BJP and Prime Minister Narendra Modi, saying there has never been a weaker government and weaker Prime Minister than the incumbent ones. Priyanka, who is in Wayanad, where her brother and party chief Rahul Gandhi, is contesting besides Amethi in Uttar Pradesh, sought to know whether suppressing the voice of those who criticise the government’s policies amounts to nationalism She questioned the nationalism of those who refused to listen to thousands of farmers who had marched barefoot to Delhi to highlight their problems. Priyanka said people deserve a Prime Minister who respects them and does not dismiss his own promises casually. Sisters and brothers of Wayanad, I have never seen a weaker government, than the government that has been in power for last five years in India. I have never seen a weaker Prime Minister than the Prime Minister of India today. My sisters and brothers, I think you deserve better. I think you deserve a government that speaks for you, she said. You deserve a government that encourages you to raise your voice even when it is against the government. I believe you deserve a Prime Minister who respects you and who respects every word that he speaks before you and does not dismiss casually his own promises, she added. The AICC in-charge of Eastern Uttar Pradesh wanted to know if attempts to destroy the Constitution and weakening institutions that protect the rights of the people was nationalism. They (BJP) attempt to divide you and talk about nationalism. When thousands of farmers marched barefoot from all corners of the country to your doorstep and you send them away without listening to their suffering. When people raise their voice in protest against you, when they criticise your policies you jail them, beat them.. Is that nationalism?, she asked. Priyanka said they never speak of what they were going to do for the people of the country. When you come to election rallies and speak of Pakistan, but you do not speak of what you are going to do for the people of India or what you promised them and did not deliver, is that nationalism? Priyanka questioned.
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I-T RAIDS HAPPENING AS PER LAW, NOT PART OF POLITICAL VENDETTA, SAYS PM NARENDRA MODI

Modi Saturday said the recent Income Tax raids on certain politicians were not part of political vendetta and things were happening as per the law. Modi also defended the decision to field Malegaon blast accused Sadhvi Pragya Singh Thakur from the Bhopal Lok Sabha seat, saying she is a symbol for those who described Hindus as terrorists. She will give a tough fight to the Congress there, he said. Thakur is pitted against senior Congress leader Digvijaya Singh from the seat in Madhya Pradesh. The decision (to field Thakur) is a befitting reply to individuals who linked a whole religion and culture to terror, the prime minister said taking a jibe at the Congress over saffron terror remarks. He said the raids have all yielded proof of corruption, including siphoning of money from schemes meant for the most vulnerable sections of the society like children and expectant mothers. Responding to a question on loan defaulters Vijay Mallya, Nirav Modi and Mehul Choksi escaping the country, Modi said when they realised that under the present government, they will have to return the loan. They escaped taking benefit of the system, he said. In 2019, they have been brought to the steps of jails, after 2019, they will be in jail, Modi said.
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'FARZI' FRIENDSHIP BETWEEN BSP, SP WILL END ON MAY 23: MODI

Mayawati termed the prime minister a 'fake' backward class member, Narendra Modi Saturday said the 'farzi' friendship of the SP and the Bahujan Samaj Party will fall apart the day Lok Sabha election results are announced. You all remember the friendship that was struck during the assembly polls in Uttar Pradesh which came to an end with the announcement of results and turned into rivalry, he said referring to the understanding in 2017 between the Congress and the Samajwadi Party. The farzi dosti of bua and babua will also end the same way, Modi said.
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FORMED ALLIANCE BECAUSE WE WANT PM WHO CAN ATTACK PAKISTAN, SAYS UDDHAV THACKERAY

Uddhav Thackeray said Friday that he formed a fresh alliance with the BJP because his party wanted a prime minister who has the courage to attack Pakistan The Sena, which frequently attacked its alliance partner BJP in the last four and a half years, nevertheless chose to form alliance with the saffron party again ahead of the 2019 general elections. Chandrakant Khaire, Thackeray referred to the criticism he faced for doing a U-turn on not going with the BJP, and said, We wanted a prime minister who could attack Pakistan by entering its home. That is why we formed this alliance. I have formed alliance with the BJP (also) for the welfare of Marathwada and Maharashtra, he added. The Congress does not want abrogation of Article 370 of the Constitution which gives a special status to Jammu and Kashmir, Thackeray said, and added that his party wants that every law applicable to rest of India should also apply in Jammu and Kashmir. While lambasting the Asaduddin Owaisi-led AIMIM, Thackeray said he did not consider Muslims as enemies, and mentioned that Naveed Antulay, son of former Maharashtra chief minister Abdul Rahman Antulay, shared the dais with him only two days ago.
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COURT TO HEAR ON APRIL 24 POLICE PLEA TO CANCEL BAIL OF FORMER SUPREME COURT STAFFER IN CHEATING CASE

A Delhi court on Saturday said it will hear on April 24 a police plea to cancel bail of a former Supreme Court employee who has accused Chief Justice of India Ranjan Gogoi of sexual harassment, in a cheating and criminal intimidation case. Manish Khurana listed the matter for the next date as the accused was not served with a copy of the police’s plea. The police sought cancellation of bail granted to the woman on March 12, after the complainant claimed that he was being threatened by the woman and her associates. Kumar has alleged that the former apex court employee had defrauded him of Rs 50,000, which he claimed she took as part of a bribe, promising him a job at the court in exchange.
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PANDYA, RAHUL FINED RS 20 LAKH EACH FOR THEIR SEXIST COMMENTS

India cricketers Hardik Pandya and K L Rahul were on Saturday fined Rs 20 lakh each by the BCCI Ombudsman D. K. Jain for their sexist comments on a popular TV show. In the order published on the official BCCI website, Jain wrote that no further action will be taken against Pandya and Rahul, who have already served a provisional suspension and tendered an unconditional apology for their loose comments on women. Instead, he directed the World Cup bound players to pay a fine of Rs 20 lakh each that included a payment of Rs 1 lakh each to each of the most deserving widows of ten constables in the para-military forces who have lost their lives while on duty, through ‘Bharat Ke Veer App. Jain also instructed them to deposit Rs 10 lakh each in the fund created by the Cricket Association for the blind. All payments are to be made within four weeks from the date of the order -- April 19, 2019.
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NOT ALL WHO RECEIVED J&J HIP IMPLANTS MAY GET COMPENSATION

All patients with Johnson & Johnson's faulty hip implant may not get compensation from the company as key changes to the mechanism are being considered by the regulatory expert committee on the issue, sources said. The American multinational company, which has challenged the government's compensation formula in the Delhi High Court, has proposed to pay a fixed compensation of Rs 25 lakh to patients, irrespective of their disability or other factors. It has also suggested that payment of compensation be restricted to only those patients who had to undergo revision surgery because of faulty hip implant. The proposal will be taken up for discussion by the regulatory expert committee in a meeting scheduled for April 24. Though the committee is unlikely to agree on a fixed compensation, it might consider restricting compensation to patients who have undergone revision surgery or suffered serious injury, top official sources told. Every patient implanted with the ASR device may not be an ideal case for compensation. Moreover, in some cases it is difficult to ascertain the cause of disability. So, we will discuss this in the meeting and some changes may be considered in the eligibility criteria, an official said. The committee must also consider that majority of patients are yet to be traced, says Malini Aisola. Though around 200 applications seeking compensation have been received, the Centre has so far ordered the company to pay Rs 65 lakh and Rs 74 lakh to only two patients.
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PANEL TO REVIEW APPROVAL OF BOEING 737 MAX FLIGHT CONTROL SYSTEM

A global team of experts next week will begin reviewing how the Boeing 737 Max’s flight control system was approved by the US Federal Aviation Administration The FAA says experts from nine international civil aviation authorities have confirmed participation in a technical review promised by the agency. Former National Transportation Safety Board Chairman Chris Hart will lead the group, which also will have experts from the FAA and NASA. They will look at the plane’s automated system including the way it interacts with pilots. The group will meet Tuesday and is expected to finish in 90 days. The Boeing jetliner has been grounded around the world since mid-March after two crashes killed 346 people. Investigators are focusing on anti-stall software that pushed the planes’ noses down based on erroneous sensor readings. In a statement Friday, the FAA said aviation authorities from Australia, Brazil, Canada, China, the European Union, Japan, Indonesia, Singapore and the United Arab Emirates have agreed to help with the work, called a Joint Authorities Technical Review. The group will evaluate the automated flight control design and determine whether it complies with regulations. It also will decide if changes need to be made in the FAA’s approval process. Chicago-based Boeing is working on a software fix to the planes’ anti-stall system, known by its acronym, MCAS. In both an October crash off the coast of Indonesia and a March crash in Ethiopia, a faulty sensor reading triggered MCAS and pushed the plane’s nose down, and pilots were unable to recover. We are making steady progress toward certification and returning the Max to service, Muilenburg said as he stood in front of a Max jet at Boeing Field in Seattle. Muilenburg said he went on a test flight that day and saw the updated software operating as designed across a range of flight conditions.
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BHOPAL GAS TRAGEDY AMONG WORLD'S MAJOR INDUSTRIAL ACCIDENTS OF 20TH CENTURY: UN

The 1984 Bhopal gas tragedy which killed thousands of people is among the world's major industrial accidents of the 20th century, a UN report has said, warning that 2.78 million workers die from occupational accidents and work-related diseases each year. The report released by the the UN labour agency International Labour Organization (ILO) said in 1984, at least 30 tons of methyl isocyanate gas, which was released from the Union Carbide pesticide plant in the Madhya Pradesh capital, affected more than 600,000 workers and nearby inhabitants. The Government figures estimate that there have been 15,000 deaths as a result of the disaster over the years. Toxic material remains and thousands of survivors and their descendants have suffered from respiratory diseases and from damage to internal organs and immune systems, it said. Among the other nine major industrial disasters after 1919 listed in the report are the Chernobyl and Fukushima nuclear disasters as well as the Rana Plaza building collapse. In the Chernobyl disaster in April 1986, one of four nuclear reactors at the Chernobyl power station in Ukraine exploded, releasing at least 100 times more radiation than the atom bombs dropped on Nagasaki and Hiroshima. The explosion killed 31 people immediately and thousands of people in the aftermath. The number of casualties in the region increases every year due to long term effects including a sharp increase in thyroid cancer, the report said. Following a major 9.0 magnitude earthquake and tsunami which struck north-eastern Japan in March 2011, the Fukushima nuclear power plants experienced equipment failures which caused a series of explosions, fires and radiation releases, causing injuries to plant workers and emergency responders, it said. In one of the worst industrial disasters in Bangladesh, the Rana Plaza building in Dhaka collapsed in April 2013. The building, which housed five garment factories, killed at least 1,132 people and injured more than 2,500. According to recent estimates released by the ILO, each year 2.78 million workers die from occupational accidents and work-related diseases (of which 2.4 million are disease-related). An additional 374 million workers suffer from non-fatal occupational accidents. It is estimated that lost work days globally represent almost four per cent of the world's GDP, and in some countries, this rises to six per cent or more. The report attributes stress, excessively-long working hours and disease to worker casualty every year, underlining ILO's message that no paid work should threaten a worker's wellbeing, safety or life. The agency also identified several new or existing occupational risks of growing concern, that affect women more than men. These include modern working practices overall, world population growth, increased digital connectivity and climate change, which are believed to account for losses of almost four per cent of the global economy. The world of work has changed, we're working differently, we're working longer hours, we're using more technology, ILO's Manal Azzi told. The report says 36 per cent of workers are working excessive long hours, meaning more than 48 hours per week, she said. The greatest proportion of work-related deaths – 86 per cent – come from disease, according to the ILO, with some 6,500 people a day dying from occupational diseases, compared to 1,000 from fatal occupational accidents. The greatest causes of mortality are circulatory diseases (31 per cent), work-related cancers (26 per cent) and respiratory diseases (17 per cent). As well as the economic cost we must recognise the immeasurable human suffering such illnesses and accidents cause. These are all-the-more tragic because they are largely preventable, Azzi said.
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SRI LANKA BLASTS: EASTER DEATH TOLL RISES TO 290, OVER 500 INJURED

The toll in a series of eight blasts targeting mostly churches and hotels in Sri Lanka on Sunday has risen to 290, a police spokesman said on Monday. More than 500 people were wounded in the blasts he added, in the deadliest violence since the end of the country's long-running civil war a decade ago. Sri Lanka confirmed that 11 foreigners who died in the attacks had been identified -- including citizens of India, Portugal, Turkey, the UK and US -- and said 25 unidentified bodies believed to be foreigners were in a Colombo morgue. Most were targeted at the Shangri-La, Kingsbury and Cinnamon Grand hotels in the capital. Several blasts occurred hours after the first explosions on Sunday, and experts detonated a pipe bomb found on a road near Colombo’s airport. Authorities imposed a nationwide curfew and blocked platforms like Facebook and Whatsapp.
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TRUMP ADMINISTRATION TO ELIMINATE IRAN OIL WAIVERS AFTER MAY 2 EXPIRATION

The Trump administration won’t renew the waivers that let countries buy Iranian crude oil without facing U.S. sanctions, according to four people familiar with the matter, a move that could roil energy markets and risks upsetting major importers such as India and China. Michael Pompeo will announce the decision on Monday morning, said the people, who asked not to be identified discussing a plan that hasn’t been formally unveiled. The current set of waivers -- issued to China, India, Japan, South Korea, Italy, Greece, Turkey and Taiwan -- expire on May 2. The administration also will announce commitments from other suppliers, including Saudi Arabia and the United Arab Emirates, that will offset the loss of Iranian crude on the market, according to two of the people. The decision not to renew the waivers is a victory for National Security Advisor John Bolton and his allies who had argued that U.S. promises to get tough on Iran were meaningless with waivers still in place. Pompeo and his team had been more cautious, though they also had argued that the market was well-enough supplied to ramp up the pressure on Iran. The maximum pressure campaign could not be maximalist until the administration cut off Iran’s oil exports, said Mark Dubowitz. With this decision, Iran’s economy will be under severe pressure as its hard currency earnings dry up and its foreign exchange reserves plummet. Trump withdrew from the 2015 nuclear deal between Iran and world powers almost a year ago and revived a range of sanctions against Iran and any countries doing business with the Islamic Republic. But he and his top advisers have been wary of roiling energy markets -- and spurring a hike in prices at the pump in the U.S. For that reason, they allowed waivers for Iran’s biggest buyers of crude, including China, India and Turkey.




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