FFFAI foresees transparency in business
S. Ramakrishna, Vice Chairman, Federation of Freight Forwarders Associations of India (FFFAI), shares his perception on the impact of demonetisation on custom brokerage and the freight forwarding industry.
With regard to the impact on Customs Brokerage and freight forwarding business, the FFFAI is foreseeing very positive results. Cash flow in any case with the custom brokers or freight forwarders does not impact much except a very few cases. In our trade, majorly all charges, statutory or shipping line or airline charges, are paid by NIFT, RTGS, cheque, etc. Various associations also worked out with the airlines and custodians by cheque payment as well. There might be some impact but the same have been mitigated with proactive co-operation of all concerned.
The long-term effect of the demonetisation drive would be very positive. There would be more transparency and all transactions would be through banking channels only, which means lessening of direct and indirect tax issues. Account books would be clear all the time.
More professionalism and transparency would lead to other partners have more trust and faith on our community, leading to cheque dealing rather than on-line transfers through banking channels.
The major issue has been the payment to unorganised sector. The government should give adequate facilities to have the payment through custodian for labour, packing, etc., within the port or ICDs and transporter should be encouraged to use petro cards for their vehicles which would reduce cash transactions. Similarly, universal toll cards should be mandated which will further reduce the cash transactions. GST will also do away with interstate tax.
We hope that in postdemo net is at ion policy framework FFFAI’s viewpoint would be heard seriously for the interest of Exim trade as well as the country’s economy.
There would be transparency and all transactions would be through banking channels only, which means lessening of direct and indirect tax issues