The basic objective of the budget should be to make exports competitive as well as profitable. I hope the following Pre-Budget recommendations would receive due consideration of the Finance Minister while finalizing the Budget proposals:-PRE-BUDGET RECOMMENDATIONS:- 1. To hike duty drawback rates by 5 per cent by increasing the scope and coverage of duty drawback scheme so as to ensure full reimbursement of excise duties, custom duties, service tax, education cess and various state level taxes.
2. To provide adequate and need-based funds to exporters at reasonable rates of interest which should not exceed 7 per cent as applicable to agriculture sector and restore 4 per cent interest rate subvention on export credit.
3. To restore 100% exemption to export earnings under Section 80 HHC of Income Tax Act atleast for the next five years.
4. To exempt from Service Tax all the export related services to avoid blockage of capital of exporters, as the procedure for refund is time-consuming, resulting in unnecessary delays and harassment.
5. The Custom duty on import of textiles machinery, accessories and fabrics should be abolished allowing free import at nil rate
6. The Government should also arrange refund of State Levies on exports, amounting to 6% of f.o.b. value
7. Apart from taxation relief, I would expect the Government to reduce the transaction cost by simplifying administrative procedures by avoiding delays at customs clearance of goods; improving loading and unloading of cargo and infrastructure at ports to avoid congestion at various ports.
Rakesh Vaid
Garments Exporters Association
gea_1974@airtelmail.in
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