Why the USA Excluded South Africa from G20 (2026)
1. Human-Rights Allegations
—>US accused South Africa of mistreating the white minority (Afrikaners).
—>Alleged failure to act on racially motivated violence.
2. Economic & Policy Concerns
—>Claims SA follows redistributionist, anti-investment policies.
3. Diplomatic Misconduct During G20–2025
—>US said SA did not properly hand over the G20 presidency.
—>Alleged ignoring or sidelining US proposals in the 2025 summit.
4. Geopolitical Alignments
—>SA’s perceived closeness to Iran and anti-US blocs.
—>US sees SA as promoting anti-Western narratives.
5. Ideological Differences
—>SA presidency focused on solidarity, equality, sustainability, which US called “politics of grievance”.
—>US wants G20 to prioritise trade, investment, supply chains.
6. Strategic Signalling by the US
—>US wants a “new G20” more aligned with its own global agenda.
—>Excluding SA sends a message to Global South nations about alignment.
#GS1mains
#CA2025
1. Human-Rights Allegations
—>US accused South Africa of mistreating the white minority (Afrikaners).
—>Alleged failure to act on racially motivated violence.
2. Economic & Policy Concerns
—>Claims SA follows redistributionist, anti-investment policies.
3. Diplomatic Misconduct During G20–2025
—>US said SA did not properly hand over the G20 presidency.
—>Alleged ignoring or sidelining US proposals in the 2025 summit.
4. Geopolitical Alignments
—>SA’s perceived closeness to Iran and anti-US blocs.
—>US sees SA as promoting anti-Western narratives.
5. Ideological Differences
—>SA presidency focused on solidarity, equality, sustainability, which US called “politics of grievance”.
—>US wants G20 to prioritise trade, investment, supply chains.
6. Strategic Signalling by the US
—>US wants a “new G20” more aligned with its own global agenda.
—>Excluding SA sends a message to Global South nations about alignment.
#GS1mains
#CA2025
💯1
—>Cesses and surcharges under Article 270 are not part of the divisible pool of taxes.
—>States have been demanding that the Centre reduces dependence on cesses because it reduces their share.
—>Indicates attempt to build trust with states amid GST compensation disputes.
#GS2mains
—>States have been demanding that the Centre reduces dependence on cesses because it reduces their share.
—>Indicates attempt to build trust with states amid GST compensation disputes.
#GS2mains
Why is Excise Not Levied on Pan Masala Normally?
—>GST subsumed excise duty
After GST (2017):
—Central excise duty remains only on petroleum, tobacco, and a few special goods.
—Pan masala was moved into GST regime, taxed at GST + Compensation Cess.
Thus, excise duty cannot be levied on consumption of pan masala, because:
—GST already taxes consumption —>Dual taxation is not allowed.
Hence excise duty is being sought to be levied on the production capacity of pan masala units, which is a demerit good
Meaning:
—>Excise duty will apply not on output, but on installed manufacturing capacity, i.e.,
the number and capacity of machines in pan masala factories.
Why this unusual method?
1. Pan masala industry is notorious for tax evasion—underreporting of production.
2. Capacity-based taxation improves monitoring.
Why is the Centre creating a new cess when compensation cess is ending?
Possible angle:
—>To maintain revenue after expiry of compensation cess (used to repay 2.69 lakh crore COVID-period borrowings for states).
—>GST subsumed excise duty
After GST (2017):
—Central excise duty remains only on petroleum, tobacco, and a few special goods.
—Pan masala was moved into GST regime, taxed at GST + Compensation Cess.
Thus, excise duty cannot be levied on consumption of pan masala, because:
—GST already taxes consumption —>Dual taxation is not allowed.
Hence excise duty is being sought to be levied on the production capacity of pan masala units, which is a demerit good
Meaning:
—>Excise duty will apply not on output, but on installed manufacturing capacity, i.e.,
the number and capacity of machines in pan masala factories.
Why this unusual method?
1. Pan masala industry is notorious for tax evasion—underreporting of production.
2. Capacity-based taxation improves monitoring.
Why is the Centre creating a new cess when compensation cess is ending?
Possible angle:
—>To maintain revenue after expiry of compensation cess (used to repay 2.69 lakh crore COVID-period borrowings for states).
💯1
—>Minimum Value Register (MVR) is the government-notified minimum price of land used for stamp duty and registration; transactions cannot legally occur below it.
—>Issue: In Bihar, MVR is outdated (rural last revised 2013; urban 2016), creating a wide gap with rising market prices. This leads to undervaluation, revenue loss, black-money generation, and distorted land markets.
Urbanisation & Infrastructure Growth: Urban expansion, satellite townships and rising market prices demand periodic MVR updates to ensure orderly urban land markets.
Benefits:
Updated MVR improves transparency, checks black money, aligns land prices with reality, supports fair compensation, and boosts state finances(expands non-tax revenue and fiscal capacity of the state)
#BIHARspecial
—>Issue: In Bihar, MVR is outdated (rural last revised 2013; urban 2016), creating a wide gap with rising market prices. This leads to undervaluation, revenue loss, black-money generation, and distorted land markets.
Urbanisation & Infrastructure Growth: Urban expansion, satellite townships and rising market prices demand periodic MVR updates to ensure orderly urban land markets.
Benefits:
Updated MVR improves transparency, checks black money, aligns land prices with reality, supports fair compensation, and boosts state finances(expands non-tax revenue and fiscal capacity of the state)
#BIHARspecial