Goaltide Daily Current Affairs 2021

Nov 01, 2021

Current Affair 1:
What is so strange about Cyclone Gulaab?


Between 1891 and 2020 only 50 cyclones have formed in September in the Indian subcontinent. They are mainly formed in October and November — the main cyclone-regenerating months.

Since cyclones started getting officially monitored in 1975, only 11 have formed in September: Six in the Bay of Bengal and five in the Arabian Sea. But cyclone ‘Gulaab’ achieved the rare feat of forming over both

Watch the video to know how and why.

Watch this: https://youtu.be/tVQVVZJtUOw

Current Affair 2:
Relation of Global Minimum (Corporate) Tax' with Equalization Levy


Now the question is once the 'Global Minimum (Corporate) Tax' kicks in, will India have to abolish the 'Equalization Levy' which it imposes on multinational technology companies such as Google, Facebook etc.? YES.

Equalization Levy:

Google does not have any establishment/physical presence in India but earning revenue from India (Indian residents) through advertisements on its websites. And Google does not book/calculate any profit from its India operations and hence was not paying tax as per Income Tax Act 1961. For these type of companies Govt. of India brought Equalization Levy (in 2016) to tax such income. So, Equalization Levy of 2% was imposed on the Revenues of such companies (and not profit as they were not calculating profit) which they were earning from Indian residents.

Global Minimum Corporate Tax (GMCT):

Big Technology companies shift their profits to such countries where corporate tax rate is less. The companies do not shift the actual business but mostly financial transactions are involved. As the competition among the countries is increasing to attract more business/investment, so countries also resort to reduction in corporate taxes. This has led to the loss of tax revenue to the home country Govt. That is why countries have agreed to implement a Global Minimum Corporate Tax. So, let us say there is a company XYZ in US where corporate tax is 20%, and the company shifts its business revenues to another country say Mauritius where corporate tax is 5% then US Govt. will have the authority to collect tax from XYZ = GMCT (let us say 15%) - 5%. This means that now if the companies shift their business revenues to tax heavens then also they will have to pay a minimum tax.

The Global Minimum Corporate Tax Framework that the countries have agreed has two-pillar package:

Pillar One will ensure a fairer distribution of profits and taxing rights among countries with respect to the largest Multi-National Enterprises (MNEs), including digital companies. It would re-allocate some taxing rights over MNEs from their home countries to the markets where they have business activities and earn profits, regardless of whether firms have a physical presence there. (So, because of this pillar, Equalization Levy will not be required anymore)

Pillar Two seeks to put a floor on competition over corporate income tax, through the introduction of a global minimum corporate tax rate that countries can use to protect their tax bases. (This is GMCT example of 15% given above).

Current Affair 3:
Exchange Traded Funds (ETF)


What is an Exchange Traded Fund or ETF? An Exchange Traded Fund is a fund which invests in shares, bonds or commodities and track their prices. Hence, the value of ETF is in turn based upon the value of underlying security or commodity. The ETFs are traded on the stock exchanges like Shares.


BHARAT BOND ETF: Debt-based ETF made by pooling bonds issued by central public sector enterprises. 1st corporate bond ETF of India. Minimum investment: Rs.1000; Maximum investment for retail investors: Rs. 2 Lakh; Maturity Period: 3-year and 10-year.

What is Gold-based ETFs? The Gold-based ETFs are those ETFs which invest in Gold. The company issuing the gold ETFs invests its money in physical Gold and converts its investment in different units of paper-based ETF. Normally, 1 unit of gold ETF in paper form represents 1 gm of physical gold. So, when a person buys 10 units of ETF, it is akin to buying of 10 gms of gold.

Please note that the person does not get custody of the physical gold on buying the ETF. He gets only the units of ETF which represents physical Gold. These ETFs can be bought or sold in the stock exchange.

Redemption of Gold-based ETFs: Only some of the ETFs provide the option of redemption of Gold based ETF in terms of physical Gold for the retail Investor. However, for large Investors, the Redemption in terms of physical Gold is allowed only after their investment exceeds a certain threshold. This threshold varies across ETF and is usually above 1 kg (1000 Units).

Advantages of Gold-based ETF:

  • Secure investment: No concerns over theft or storage
  • Easy Transactions: Traded on the Stock Exchanges
  • Loan Collateral: Can be used as Collateral to borrow loans
  • Higher Returns: Provide higher returns to the Investment

Current Affair 4:
How do microplastics end up in babies' poop?


When plastic bags or bottles are discarded, they degrade into small pieces that can creep into every part of nature, even human tissues. When we wash synthetic fibers like polyester or liva, for instance, they shed parts and flow back into our local water bodies.

Microplastics have also been found in places like the Arctic and deepest parts of the oceans.

The market today is flooded with bright, shiny toys and soft clothes for babies. But how is this related to microplastics in their faeces?

Most products today like sipper cups, lunch boxes, baby bottles and wiping napkins are made of a substance called PET or polyethylene terephthalate. PET is taken from natural gas and crude oil.

It is also another version of the polyester fabric, which is added to rayon, cotton and wool to retain their ‘newness’. The synthetic form of the fiber can be converted to a molten liquid and made into any shape.

While this type of plastic can be recycled, in reality the percentage that is recycled is negligible.

When babies put these in their mouth or play, they ingest microplastics that these products shed.

As a result, they are exposed to more microplastics as compared to adults, according to a study published in the journal Environmental Science & Technology Letters.

Current Affair 5:


Kath-Kuni’ is a popular type of natural building which uses locally available wood and stone as prime materials for construction. These humble-looking abodes made of stone, mud and wood were popular in Himachal Pradesh.

It is environmentally friendly, keeps the cold out and can survive earthquakes due to its high tensile strength. ‘Kath-Kuni’ is made of two words — ‘Kath’ meaning ‘wood’ and ‘Kuni’ meaning ‘corner’.

While Kangra and Spiti regions abound in houses made of mud and stone, Kath-Kuni houses are native to this middle Himalayan belt which includes Kullu, Manali, Chamba, Shimla and some parts of Uttarakhand.

Kath-Kuni is structurally different from conventional building methods. Instead of vertical columns, it is built on horizontal beams. Through ‘criss cross’ bracings, an entire wooden structure is constructed.

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