Exporters call for support measures to increase shipments

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Between April and December 2021-22, exports increased by 49.66% to $301.38 billion.

New Delhi:

Exporters demanded support measures, including enhanced allocations for the RoDTEP scheme, high import duties on finished plastic products, the establishment of an Indian shipping line and the reinstatement of the exemption for the duty-free importation of essential inputs for leather products, in the next budget to promote the growth of outbound shipments from the country.

They also suggested tax incentives to address logistical challenges and reduced income tax from 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 a world-class Indian shipping company as this will help reduce dependence on shipping companies foreign.

He said the export sector faces major challenges due to rising freight costs and its dependence on global shipping companies.

“Commercializing abroad is a big challenge for exporters, even more so for MSMEs, because it entails a very high cost. We must put in place the double tax deduction regime for internationalizations to allow exporters to deduct from their taxable income… A cap of USD 5 lakh can be placed under the scheme so that investment and tax deduction are limited,” FIEO Chief Executive Ajay Sahai said.

Sharda Kumar Saraf, Mumbai-based exporter and Chairman of Technocraft Industries, said Reimbursement of Duties and Taxes on Export Production (RoDTEP) is one of the most important tools to support export marketing , but its current budget of around Rs 40,000 crore is insufficient.

“We hope the Minister of Finance will take cognizance of this fact and provide an appropriate budget for the RoDTEP,” Saraf said.

Chairman of India’s Plastics Export Promotion Council (Plexconcil), Arvind Goenka, has suggested that import duties on finished plastic products should be at least 5% higher than on polymer raw materials.

“For example, the import duty on PVC resin is 10% and that on value-added PVC products is also 10%, so there is no incentive to boost domestic production,” he said. Goenka.

Leather Exports Council (CLE) Chairman, Sanjay Leekha, recommended reinstatement of exemption for duty-free importation of essential inputs for leather garments and footwear; and the extension of the basic exemption from 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 world markets against goods from competing countries, in addition to boosting exports, Leekha said.

It also recommended reinstating the basic customs duty on the import of wet, crust and finished blue leathers, as the exemption was removed last year.

Sharing a similar view, Farida Group Chairman Rafeeq Ahmed said measures for the labor-intensive sector – leather in the budget will help create more jobs and boost businesses. exports.

“The government should consider removing import duties on finished leather. Measures should be announced for the establishment of micro-parks for the sector,” Ahmed said.

Hand Tools Association President SC Ralhan said the government is expected to announce some provisions to promote container manufacturing in India.

“The budget should also consider extending tax breaks to exporting MSMEs,” Ralhan said.

Between April and December 2021-22, exports increased by 49.66% to $301.38 billion.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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