A surge in the number of farm fires in India’s northern Punjab has caused air quality to descend to “severe” levels in India’s capital city despite the government making efforts to reduce Delhi’s air pollution.
The air quality index in the city of 22 million people hovered at an average of 450 — or “severe” category — on Thursday, according to the Central Pollution Control Board, the country’s top environmental body.
More than 3,600 cases of stubble burning were recorded in Punjab on Wednesday, the highest number of farm fire incidents this season, leading to high pollution levels.
Particulate matter (PM 2.5) levels were over the 450 mark on average across the city — which is severely over the global safe limits.
PM 2.5 is fine dust and other harmful particles measuring less than 2.5 microns that penetrate deep into the lungs and enter the bloodstream, leaving to respiratory and cardiac diseases.
The World Health Organisation considers 5 micrograms per cubic metre as the safe level of exposure to particulate pollution.
In Noida, a satellite city, the average AQI was recorded at a “severe” 422, while the PM 2.5 level was 500.
Federal Environment Minister Bhupender Yadav blamed the farm fires in northern Punjab state for turning Delhi into a “gas chamber”.
Delhi is one of the world’s most polluted capital cities, suffering from high levels of air pollution throughout the year.
But toxic air levels are at their worst during winter, when winds push the smoke from farmlands into the city and shroud it under a blanket of smog.
The practice of stubble burning becomes an issue every winter, when farmers in the vast farmlands of neighbouring states Haryana and Punjab burn paddy stubble to clear their fields for the next crop.
Most of the smoke travels to Delhi due to prevailing winds and mixes with the city air to form a noxious blanket of smog that aggravates the pollution crisis.
Vehicular, industrial, and road dust remain the chief pollutants, according to government figures.
Although stubble-burning has been outlawed for many years, thousands of farm fires are reported in the twin breadbasket states.
The government decriminalised the method last year following protests by farmers, but continued with the statutory prohibition.
More than 16,000 cases of stubble-burning were recorded in Punjab in September and October this year.
Sangrur, the home district of Punjab Chief Minister Bhagwant Mann, registered the highest number, with 677 cases.
“As of today, Punjab, a state run by the AAP government, has seen an over 19 per cent rise in farm fires over 2021. Haryana has seen a 30.6 per cent drop. Just today, Punjab saw 3,634 fires. There is no doubt over who has turned Delhi into a gas chamber,” BJP member Mr Yadav said.
He blamed the AAP, which is also the party of Delhi Chief Minister Arvind Kejriwal, for failing to tackle the incidents by providing enough funds to farmers for alternative methods such as bio-decomposers.
Mr Yadav said that 2.1 billion rupees were left unspent in Punjab last year and his government gave 2.8 billion rupees ($33 million) to Punjab for crop residue management machines this year, so 4.9 billion rupees "was available but the state government chose to sit with the funds, forcing helpless farmers to burn the crop residue”.
Mr Kejriwal, who last month announced measures including banning construction and an anti-dust campaign to tackle the menace in Delhi, criticised the central government for politicising the issue.
“It is a problem that has affected all of northern India but it is being shown as a problem only in Delhi and Punjab. Whatever the Delhi government can do at its level, we are doing it,” Mr Kejriwal said.
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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.
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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
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