Indian weather authorities issued a “red warning” — the highest level weather alert — over coastal districts of southern Andhra Pradesh, predicting heavy to very heavy rainfall despite severe cyclonic storm Asani having already weakened.
Asani, which means "wrath" when translated from the Sinhalese, was still brewing in the Bay of Bengal and came within 34 kilometres of Narsapur city in the state on Wednesday, with wind speeds of 85kph.
The weather department has predicted heavy to very heavy rainfall in the state and neighbouring Odisha state in the evening.
“It is very likely to move nearly northwards for [the] next few hours and [then] slowly north-north-eastwards along Narsapur, Yanam, Kakinada, Tuni and Visakhapatnam coasts during noon to evening on Wednesday,” the India Meteorological Department said.
“It will emerge into the west-central Bay of Bengal off the North Andhra Pradesh coast by evening,” the department said.
The cyclone is expected to further weaken into a depression by Thursday.
The weather office has predicted a storm surge of 0.5 metre above “astronomical tide”, inundating low-lying areas of Krishna and east and west Godavari districts of the state.
Authorities have sent teams of national and state rescue forces and naval ships are kept on a standby mission with relief materials. At least 19 flood relief teams are being kept at Visakhapatnam.
Nearly 300 relief camps have been opened in seven districts in the state and people from 500 villages in the low-lying areas have been moved to safe shelters. Fishermen have been advised to suspend fishing operations.
At least 37 trains and more than 50 flights were cancelled in the state as a precautionary measure.
“It has weakened but we have taken all precautions. People from low-lying areas have been moved to safe places and pregnant women have been shifted to hospitals. We are expecting minimum damages,” Dr MM Ali, who is in charge of emergency operations at Assam State Disaster Management Authority, told The National.
Rough sea conditions and winds with speeds up to 30kph were recorded at Puri beach in Odisha on Wednesday.
As many as five coastal districts in the state have been put on high alert. Authorities have sent nearly two dozen National Disaster Response Force teams for relief work.
Neighbouring West Bengal is also bracing for heavy rainfall.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
