New Delhi, Aug. 25 Exporters are expecting the forthcoming Foreign Trade Policy to provide the much-needed impetus for growth revival in the face of waning overseas demand.
They are hoping that the policy, to be unveiled on August 27, will act on certain long pending demands such as streamlining the taxation structures and creating market development assistance funds to fuel growth.
“Exports from India have declined by nearly 33 per cent in the last six months alone. To put the exports back into swing, we have urged the Government to look into various issues pertaining to the sector which includes creating new markets and exemption from service tax,” Mr S.P. Agarwal, President Delhi Exporters Association.
He said exporters have to pay service tax on about 25 different heads.
“Though exporters are exempted to pay service tax, yet they have to pay first and then apply for the refund, which is very cumbersome and hardly any exporter has been granted a refund.
“Due to global slowdown some exporters are working only on 4-5 per cent margin of profit. So how will we get the money to pay 10.5 per cent? Some exporters have to borrow money to pay this tax,” he added.
Other demands include funds to access unexplored markets such as Latin America and Africa.
Apex trade body Federation of Indian Export Organisations has, among other things, demanded a reduction in the taxes to help exporters to do their pricing competitively.
The FIEO President, Mr A. Sakthivel, said that in the present circumstances only competitive pricing can be the solution.
FIEO also called for rebate from various State taxes.
“GST is likely to be introduced as dual GST, one for Central taxes and other for State taxes. The merging of two into a comprehensive national GST will take a long time.
“Exports are already burdened with the incidence of State and local levies which for certain products in certain States may be as high as 5-6 per cent of the FOB value. Foreign Trade Policy should therefore, announce a new scheme to rebate State and local levies on an average basis.”
Mr Tarun Dewan, Secretary-General, Sports Exports Goods Promotion Council, said the association was hoping that the Government would continue with the Focus Product Scheme.
“We have requested that duty free scrip under this scheme may be increased to 10 per cent for sports goods sector and it should be made available for at least the next three years.”
Exporters have also sought creation of chamber at various Indian embassies abroad to hold exhibition of goods.
Source : Business Line