Industry to Offer Ideas to Ease Compliance Burden

Industry to Offer Ideas to Ease Compliance Burden

Sub: Eco

Sec: National Income

Union Commerce and Industry Minister addressed the FICCI National Executive Committee meeting emphasizing the government’s efforts to reduce the compliance burden on businesses and decriminalize laws to ease investment inflows.

• Jan Vishwas Law 2.0:
  • The government is working on a second iteration of the Jan Vishwas law to further reduce compliance burdens and decriminalize laws.
  • The first iteration in 2023 decriminalized 182 sections across laws governed by 18 central government departments.
  • Urging businesses to be more proactive and demanding in providing feedback and suggestions, to provide ideas on reducing the compliance burden and decriminalizing laws.
  • Urged the industry to share practical, result-oriented ideas that can be implemented without compromising health, safety, or security.
  • He emphasized that the industry must provide a balanced view on necessary changes, suggesting how issues like fraud or misuse could be tackled through fines or other measures.
• Foreign Direct Investment (FDI):
  • Net inward FDI inflows declined to $26.5 billion in 2023-24 from $42 billion in 2022-23, according to the RBI’s Annual Report for 2023-24.
  • Goyal’s visit to Switzerland on July 14 aims to work towards achieving the $100 billion FDI goal under the India-EFTA Trade & Economic Partnership Agreement.
• Sector-Specific Example: Entertainment Industry:
  • Goyal cited the entertainment industry, which has significant potential, as an example of where easing licensing procedures could help.
  • He proposed the idea of a single portal to handle all approvals to counter harassment faced by industry players for licenses and approvals.

Jan Vishwas Act, 2023

The Jan Vishwas (Amendment of Provisions) Act, 2023 aims to enhance the business environment in India by reducing compliance burdens and removing the fear of imprisonment for minor offences, fostering trust-based governance.

• Decriminalization of Offences:
  • Minor offences not involving harm to public interest or national security are decriminalized, replacing them with civil penalties or administrative actions.
  • 183 provisions across 42 Central Acts are decriminalized, such as under the IT Act, 2000, where disclosing personal information in breach of a lawful contract now attracts a penalty of up to ₹25 lakh instead of imprisonment.
• Removal of Offences:
  • Certain offences are fully removed, including all offences under the Indian Post Office Act, 1898.
• Periodic Revision of Penalties:
  • Fines and penalties will increase by 10% of the minimum amount every three years.
• Adjudicating Officers:
  • The government may appoint one or more adjudicating officers to determine penalties through an adjudication mechanism, imposing monetary penalties.
• Appellate Mechanisms:
  • An appellate mechanism is introduced for grievance redressal regarding decisions made by adjudicating officers.