|Subject||Center to provide rebating of State taxes levied on exports till states come on board:FIEO|
Mumbai : Responding to the announcement made during the Interim Budget for 2014-15, Mr M Rafeeque Ahmed, President, FIEO said that the Interim Budget recognizes the impending challenges of the global economy which Indian exports will encounter. President, FIEO welcomed the Finance Minister announcement that all taxes, Central and State that go into an exported product should be waived or rebated.
Mr Ahmed said that while rebating of the Central Taxes through various Schemes is in operation, the State Taxes blunt the competitiveness of different exports products between 2-5% of their export value depending upon location of the manufacturing units. Central Government should prevail upon the States to provide exemption from duties/taxes on inputs used in manufacturing of exports goods.
Till the same happens, Central Government should provide a rebate of the same either through a different Scheme or by adding to the Schemes providing rebate of Central Taxes.
FIEO Chief welcomed the move to reduce duties on certain Capital Goods from 12% to 10% which may encourage manufacturers to bring new technologies both for setting up of units and expansions.
Mr Rafeeque Ahmed said that manufacturing holds the key to exports and with manufacturing showing 1% growth in 2012-13 and expected to contract by 0.6% in 2013-14, its impact on exports would be soon visible. He urged to encourage investment in manufacturing by providing fiscal concession even to MSME units.
The setting up of research funding organizations will help the export sector which is in much need of innovation and research.
Mr Ahmed urged the Government to provide 100% tax deduction on investment made to such funds to augment its equity base to meet the growing requirement of the industry.
Source : dailyshippingtimes.com
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