File photo of Aam Aadmi Party leader Arvind Kejriwal after he cast his vote in New Delhi on February 7, 2015. Mr Kejriwal, who was elected as Delhi's chief minister in February, has accused prime minister Narendra Modi’s administration of undermining the elected Delhi government. Altaf Qadri/AP Photo
File photo of Aam Aadmi Party leader Arvind Kejriwal after he cast his vote in New Delhi on February 7, 2015. Mr Kejriwal, who was elected as Delhi's chief minister in February, has accused prime minister Narendra Modi’s administration of undermining the elected Delhi government. Altaf Qadri/AP Photo
File photo of Aam Aadmi Party leader Arvind Kejriwal after he cast his vote in New Delhi on February 7, 2015. Mr Kejriwal, who was elected as Delhi's chief minister in February, has accused prime minister Narendra Modi’s administration of undermining the elected Delhi government. Altaf Qadri/AP Photo
File photo of Aam Aadmi Party leader Arvind Kejriwal after he cast his vote in New Delhi on February 7, 2015. Mr Kejriwal, who was elected as Delhi's chief minister in February, has accused prime mini

India’s Modi accused of ‘betraying the people of Delhi’


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NEW DELHI // Arvind Kejriwal, the chief minister of Delhi, has set himself on a collision course with prime minister Narendra Modi, accusing Mr Modi’s administration of undermining the elected Delhi government and “betraying the people of Delhi”.

Mr Kejriwal has also alleged that Delhi’s lieutenant governor Najeeb Jung, an official appointed by the representative of the federal government, was interfering with the appointment of bureaucrats in the city.

The tussle once again highlights the unique and sometimes nebulous position that Delhi occupies within India’s federal structure.

Tensions between Mr Kejriwal and Mr Jung emerged when the chief minister alleged that Delhi’s new acting chief secretary, Shakuntala Gamlin, had earlier tried to “trick” the Delhi government into guaranteeing loans worth 110 billion rupees (Dh6.36bn) taken out by private power companies.

Ms Gamlin had done this in her previous role as the principal secretary in Delhi’s power ministry, Mr Kejriwal said. If the companies had failed to repay the loans, “the burden would come on the people, and the rates in Delhi would have increased two- or three-fold”, he said on May 17.

For this reason, his government objected when Mr Jung named Ms Gamlin as chief secretary – the top bureaucratic position in Delhi – on May 15.

According to standard procedure, the government should have nominated its choice for the position and sent the recommendation to the lieutenant-governor for approval.

The federal home ministry issued a notice to Mr Kejriwal’s government on Thursday, arguing that the appointment of civil servants was within the lieutenant governor’s purview, and that he only needed to obtain the chief minister’s opinion “wherever he deems it appropriate”.

There have been other points of friction between Mr Kejriwal’s government and Mr Jung over the past week.

The lieutenant governor reversed the Delhi government’s transfer of another bureaucrat, Anindo Majumdar, and froze all civil service transfers and appointments until further notice.

On Thursday, Mr Modi’s home ministry also barred the anti-corruption branch of the Delhi police from registering cases against federal government employees. This negated Mr Kejriwal’s explicit instructionin April that action be taken against any corruption found within Delhi’s borders.

Media reports on Sunday said that control of the anti-corruption branch was likely to pass from Mr Kejriwal to Mr Jung.

Mr Kejriwal has accused Mr Modi and his Bharatiya Janata Party (BJP) of controlling Delhi by proxy through the office of Mr Jung. “The prime minister’s office acts like the British used to [in colonial India], with the lieutenant governor acting as the [colonial] viceroy,” he said on Friday.

Mr Modi’s government dismissed Mr Kejriwal’s charges. “It’s not worth responding to Arvind Kejriwal, who just wants drama,” said Kiren Rijiju, the junior home minister.

“We don’t believe in drama but governance.”

Delhi’s ambiguous status in India’s federal system has led to many tussles between the state and central governments over the years.

Until 1991, Delhi was one of seven full union territories – an administrative unit that was ruled directly by the federal government through a lieutenant governor.

In that year, however, Delhi was accorded partial statehood by a constitutional amendment. This gave the city an elected legislature and government, as well as ministries to control education, power and health.

Crucially, however, the federal government retained control of Delhi’s police, as well as other powers related to land, public order, and certain financial regulations. The position of lieutenant governor was also retained, with the constitution suggesting that any differences of opinion between the lieutenant governor and the chief minister must be referred to the president of India.

Only in matters requiring urgent action is the lieutenant governor permitted to take action and override the chief minister.

Shakti Sinha, a former high-ranking bureaucrat in the Delhi government and now the director of the South Asian Institute of Strategic Affairs, a think tank, said “a certain ambiguity” had been allowed to persist in the distinction of powers between the two governments.

“It has definitely been the practice that the lieutenant governor defers to Delhi’s council of ministers,” said Mr Sinha. “But there is also a constitutional proviso that allows the lieutenant governor to interfere.”

“This is definitely not the most healthy construction,” he said.

Some constitutional scholars and lawyers have backed Mr Kejriwal, arguing that the governor should not appoint bureaucrats without the chief minister’s approval, and that Mr Jung has exceeded his authority.

In a written opinion sought by the Delhi government, lawyer Gopal Subramanium, said that Mr Jung’s actions “may be assailed in a court of law as a fraud on the constitution … It is illegal and unconstitutional”.

Mr Kejriwal has called for a two-day emergency session of the Delhi assembly, beginning on Tuesday, to deliberate Mr Jung’s actions and consider his government’s next step.

Mr Kejriwal’s Aam Aadmi Party (AAP) holds 67 seats in the Delhi assembly, while the BJP holds the remaining three.

ssubramanian@thenational.ae

The Saga Continues

Wu-Tang Clan

(36 Chambers / Entertainment One)

'Gold'

Director:Anthony Hayes

Stars:Zaf Efron, Anthony Hayes

Rating:3/5

Notable salonnières of the Middle East through history

Al Khasan (Okaz, Saudi Arabia)

Tamadir bint Amr Al Harith, known simply as Al Khasan, was a poet from Najd famed for elegies, earning great renown for the eulogy of her brothers Mu’awiyah and Sakhr, both killed in tribal wars. Although not a salonnière, this prestigious 7th century poet fostered a culture of literary criticism and could be found standing in the souq of Okaz and reciting her poetry, publicly pronouncing her views and inviting others to join in the debate on scholarship. She later converted to Islam.

 

Maryana Marrash (Aleppo)

A poet and writer, Marrash helped revive the tradition of the salon and was an active part of the Nadha movement, or Arab Renaissance. Born to an established family in Aleppo in Ottoman Syria in 1848, Marrash was educated at missionary schools in Aleppo and Beirut at a time when many women did not receive an education. After touring Europe, she began to host salons where writers played chess and cards, competed in the art of poetry, and discussed literature and politics. An accomplished singer and canon player, music and dancing were a part of these evenings.

 

Princess Nazil Fadil (Cairo)

Princess Nazil Fadil gathered religious, literary and political elite together at her Cairo palace, although she stopped short of inviting women. The princess, a niece of Khedive Ismail, believed that Egypt’s situation could only be solved through education and she donated her own property to help fund the first modern Egyptian University in Cairo.

 

Mayy Ziyadah (Cairo)

Ziyadah was the first to entertain both men and women at her Cairo salon, founded in 1913. The writer, poet, public speaker and critic, her writing explored language, religious identity, language, nationalism and hierarchy. Born in Nazareth, Palestine, to a Lebanese father and Palestinian mother, her salon was open to different social classes and earned comparisons with souq of where Al Khansa herself once recited.

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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