During April-December 2021-22, exports rose 49.66 percent to $301.38 billion.
New Delhi:
Exporters have requested support measures in the upcoming budget, including increased allocations for the RoDTEP scheme, high tariffs on finished plastic products, the establishment of an Indian shipping company and the re-imposition of the exemption for duty-free imports of critical inputs for leather products, to growth of the country’s outgoing shipments.
They have also proposed tax incentives to address logistical challenges, and lower income taxes on partnerships and LLPs to support MSME players.
The Federation of Indian Export Organizations (FIEO) said there is a need to encourage major Indian entities to build an Indian shipping company with a global reputation as it would help reduce dependence on foreign shipping companies.
It said the export sector is facing major difficulties due to rising freight costs and its reliance on global shipping companies.
“Overseas marketing is a major challenge for exporters, especially for SMEs, because it involves very high costs. We need to introduce the double tax deduction for internationalizations to allow exporters to get deductions from their taxable income… A ceiling of USD 5 lakh can be placed under the scheme so investment and tax deductions are limited,” said FIEO Director General Ajay Sahai.
Mumbai-based exporter and chairman Technocraft Industries Sharda Kumar Saraf said that the refund of duties and taxes on export production (RoDTEP) is one of the main tools to support export marketing, but the current budget of about Rs 40,000 crore is inadequate.
“We hope that the Finance Minister will take note of this fact and provide an appropriate budget for RoDTEP,” Saraf said.
Arvind Goenka, chairman of the Plastics Export Promotion Council of India (Plexconcil), suggested that import duties on finished plastic products should be at least 5 percent higher than on polymeric raw materials.
“For example, the import duty on PVC resin is 10 percent and that on value-added PVC products is also 10 percent, leaving no incentive to boost domestic production,” Goenka said.
Council for Leather Exports (CLE) President Sanjay Leekha recommended reintroducing the duty-free import exemption for critical inputs for leather clothing and footwear; and extending the exemption from basic customs duties for the import of lining and interlining materials.
These measures would promote value addition in the country and make the products competitive in global markets compared to the goods of competing countries, in addition to boosting exports, Leekha said.
He also recommended reintroducing the basic customs duty on imports of wet blue, crust and finished leather, since the exemption was lifted last year.
Rafeeq Ahmed, chairman of Farida Group, shares a similar view, saying that steps for the labour-intensive sector – learn in the budget – will help create more jobs and boost exports.
“The government should consider eliminating tariffs on finished leather. Measures should be announced to set up micro-parks for the sector,” Ahmed said.
The chairman of the Hand Tools Association, SC Ralhan, said the government should announce a number of provisions to promote container production in India.
“Budget should also consider expanding income tax benefits for MSME exporters,” Ralhan said.
During April-December 2021-22, exports rose 49.66 percent to $301.38 billion.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
