| Date: |
20-01-2016 |
| Subject: |
Address inverted duty structure in Budget to boost exports: FIEO |
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NEW DELHI: Exporters body FIEO has asked the government to address the inverted duty structure in the forthcoming Budget to boost exports, which have been declining since December 2014.
Under the inverted duty structure, finished goods are taxed at a lower rate than raw materials in order to support the manufacturing sector.
"We have requested that the inverted duty structure in respect of various items be given due consideration in the Union Budget as it not only affects exports but also the manufacturing sector," Federation of Indian Export Organisations (FIEO) President S C Ralhan said today.
The exports are already getting a hit from global slowdown, dip in commodity prices and the inverted duty structure is acting as a double-whammy for exports, he said.
Manufacturing sectors such as chemicals, paper, steel, and textiles are facing the issue of duty inversion.
The government should announce creation of an Export Development Fund in the Budget to support the credit requirement of MSME exporters, Ralhan said.
"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," he added.
Country's exports contracted 13th month in a row in December. It dipped by about 15 per cent to $22 billion during last month.
Source : economictimes.indiatimes.com
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