Budget 2016: Exporters body asks govt to address inverted duty structure in Budget

Exporters body FIEO has asked the government to address the inverted duty structure in certain sectors like electronics, in the upcoming Budget, to boost exports.

hidden February 18, 2016 13:11:09 IST
Budget 2016: Exporters body asks govt to address inverted duty structure in Budget

New Delhi: Exporters body FIEO has asked the government to address the inverted duty structure in certain sectors like electronics, in the upcoming Budget, to boost exports.

In its pre-Budget recommendations to Finance Minister Arun Jaitley, Federation of Indian Export Organisations (FIEO) has also asked for creation of an Export Development Fund in order to support MSME exporters.

Budget 2016 Exporters body asks govt to address inverted duty structure in Budget

Reuters

"The corpus of the fund should be 0.5 per cent to 1 per cent of export value so that sizable money is available to promote MSME exports," it said.

Inverted duty structure in respect of various items in sectors like chemicals and tyre may be given due consideration in the Union Budget as it not only affects exports but also the manufacturing sector and adversely hits Make in India, it added.

An inverted duty structure impacts domestic industry adversely as manufacturers have to pay a higher price for raw material in terms of duty, while the finished product lands at lower duty and costs lesser.

"The actual refund mechanism for service tax is cumbersome and time taking which blocks the working capital of exporters. Hence, the demand of exporting community is that service tax should be exempted for exports," it added.

The exporting companies may be given tax benefits on creation of employment as it will help in bringing workers into organised sector.

Exports dipped for the 14th month in a row, down 13.6 per cent in January to USD 21 billion due to fall in shipments of petroleum and engineering goods, although trade deficit showed improvement.

Imports shrank 11 per cent to USD 28.71 billion last month, resulting in a trade deficit of USD 7.63 billion, lowest in eleven months. In February last year, the deficit was USD 6.85 billion.
PTI

Updated Date:

also read

E3 2021: From Breath of the Wild sequel to Far Cry 6, a look at the event's major announcements
Sports

E3 2021: From Breath of the Wild sequel to Far Cry 6, a look at the event's major announcements

In the aftermath of a truly exciting E3 2021, Anand Krishnaswamy picks through some of his most-anticipated upcoming games and attempts to highlight a couple of developments that might have slipped under the radar.

Explained: Electronic vouchers can expand reach of COVID-19 vaccines to economically weaker sections
India

Explained: Electronic vouchers can expand reach of COVID-19 vaccines to economically weaker sections

The electronic vouchers allows a person to get a voucher for his maid or driver, and get them inoculated against COVID-19

Twitter asks for more time from govt to comply with new IT rules due to the 'pandemic situation' in India
News & Analysis

Twitter asks for more time from govt to comply with new IT rules due to the 'pandemic situation' in India

The notice from Twitter did not mention a specific date for the micro-blogging site to comply with the rules.