Exporters today urged for immediate implementation of the goods and services tax in upcoming budget for 2013-2014. Besides, it has also proposed the government to abolish CST and exemption from service tax to promote exports and narrowing the trade gap.
“As the trade gap has expanded five-fold in less than a decade from 2.3% of GDP in 2004 to 10% of GDP in 2012 and earnings from export are increasingly insufficient to cover import requirements … what remains a cause of concern is RBI data on credit off-take showing a sharp slump in the MSME segment to 3% from 28.7% in the previous year. Accordingly, the share of exports in total bank credit is witnessing continuous decline and has touched a new low of about 3%,” M. Rafeeque Ahmed, president, Federation of Indian Export Organisations (FIEO) said in its pre-budget proposal here today.Exporters today urged for immediate implementation of the goods and services tax in upcoming budget for 2013-2014. Besides, it has also proposed the government to abolish CST and exemption from service tax to promote exports and narrowing the trade gap.
“As the trade gap has expanded five-fold in less than a decade from 2.3% of GDP in 2004 to 10% of GDP in 2012 and earnings from export are increasingly insufficient to cover import requirements … what remains a cause of concern is RBI data on credit off-take showing a sharp slump in the MSME segment to 3% from 28.7% in the previous year. Accordingly, the share of exports in total bank credit is witnessing continuous decline and has touched a new low of about 3%,” M. Rafeeque Ahmed, president, Federation of Indian Export Organisations (FIEO) said in its pre-budget proposal here today. It has proposed that the government should provide incentives to investors who are eager to invest in the towns of excellence created under the foreign trade policy to promote certain the export of certain products. FIEO has also asked the government to waive off service tax for remittance to overseas offices of Indian exporters in connection with product registration as in the case of pharma sector. “Exports are burdened with the incidence of State and local levies. These levies are making our exports more uncompetitive. Therefore, state taxes like VAT, sales tax on petroleum products, purchase tax, turnover tax, octroi, and electricity duty should be refunded. This will provide 2% to 3% benefit to exporters particularly those dealing in commodities,” Ahmed added. In order to promote exports from the SMEs, FIEO has asked the government to create an export development fund (EDF). Such a fund would also enable the SMEs do aggressive marketing in new territories.
It has proposed that the government should provide incentives to investors who are eager to invest in the towns of excellence created under the foreign trade policy to promote certain the export of certain products.
FIEO has also asked the government to waive off service tax for remittance to overseas offices of Indian exporters in connection with product registration as in the case of pharma sector.
“Exports are burdened with the incidence of state and local levies. These levies are making our exports more uncompetitive. Therefore, state taxes like VAT, sales tax on petroleum products, purchase tax, turnover tax, octroi, and electricity duty should be refunded. This will provide 2% to 3% benefit to exporters particularly those dealing in commodities,” Ahmed added.
In order to promote exports from the SMEs, FIEO has asked the government to create an export development fund (EDF). Such a fund would also enable the SMEs do aggressive marketing in new territories.
