New Delhi, June 25 Aimed at putting the country’s exports back on track, the Delhi Exporters’ Association has sought certain measures from the Government which includes streamlining the taxation structure.
The association has also pitched for the creation of a special additional fund of Rs 5,000 crore to give liberal Market Development Assistance to all exporters for participation in foreign trade fairs and exhibitions.
“Exports from India have been down 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,” Mr S.P. Agarwal, President Delhi Exporters Association, told Business Line. The Association met with the Revenue Secretary, Mr P.V. Bhide.
Ways to pay
Noting that there are number of taxes paid by the exporters, he said on about 25 different heads, exporters have to pay Service Tax. “Though exporters are exempted to pay service tax, 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 to 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.
Among other issues, the association also sought an exemption to pay value added tax, CST, and fringe benefit tax.
Bring down costs
Mr Agarwal said the high borrowing cost needs to be brought down. “The present system of linking with bank prime lending rate should be abolished and flat rate of 4 per cent for the period of 365 days on export credit be introduced immediately,” he said.
The association also called for drawback refund within 24 hours of the Let Export Order as this will help in improving the liquidity situation.
“The exporters should be exempted from Income Tax, as this was in existence before 2004 and was the main cause for export growth from India,” Mr Agarwal noted. He also said that all exporters should be treated at par, irrespective (of the) different categories drawn up by the Government. “Whether they are status holder or not, located in the SEZ or 100 per cent
EOU…(the exporters) should be given the same facility/concession,” he said.
Source : Business Line