Chem­i­cals and en­gi­neer­ing may ben­e­fit from the pro­posed in­cen­tive pack­age

Financial Chronicle - - MISCELLANY - FC BUREAU

THE gov­ern­ment may ex­tend the Remission of State Levies (RoSL) to sec­tors in­clud­ing chem­i­cals and en­gi­neer­ing as part of the pro­posed in­cen­tive pack­age for ex­porters to boost the coun­try's out­bound ship­ments, an of­fi­cial said.

Cur­rently, RoSL, which is to off­set in­di­rect taxes levied by states such as stamp duty, pe­tro­leum tax, elec­tric­ity duty and mandi tax that were em­bed­ded in ex­ports, is pro­vided to tex­tiles ex­porters.

The com­merce min­istry is work­ing on an in­cen­tive pack­age for labour-in­ten­sive sec­tors to pro­mote ship­ments and ad­dress is­sues of ex­porters. It is hold­ing meet­ings with the fi­nance min­istry on the mat­ter.

As part of the pack­age, the min­istry is propos­ing sev­eral steps such as funds for re­bate of state levies, cre­at­ing sys­tem for on­line re­fund of GST (goods and ser­vices tax) and ex­pan­sion of Niryat Bandhu Scheme, the of­fi­cial said. Un­der this Scheme, men­tor­ing is pro­vided to the first-gen­er­a­tion en­trepreneurs.

Re­cently, com­merce and in­dus­try min­is­ter Suresh Prabhu said the min­istry would pro­vide sup­port to ex­porters are they are fac­ing sev­eral chal­lenges.

"We are pre­par­ing a pack­age which will en­sure that ex­porters' woes are ad­dressed prop­erly. There have been chal­lenges for the ex­port sec­tor over a pe­riod of time and one big chal­lenge is credit," he said. He also said the pack­age would fo­cus on labour-in­ten­sive sec­tors as it would help in cre­at­ing jobs.

The Fed­er­a­tion of In­dian Ex­port Or­gan­i­sa­tions (FIEO) Pres­i­dent Ganesh Ku­mar Gupta said in­cen­tives would help pro­mote ex­ports, which is ex­pected to touch $350 bil­lion in 2018-19.

"Steps like on­line ITC (in­put tax credit) re­fund, one-time amnesty for ful­fill­ing ex­port obli­ga­tion un­der Ad­vance Au­tho­ri­sa­tion and EPCG (Ex­port Pro­mo­tion Cap­i­tal Goods) Scheme, and Mer­chan­dise Ex­ports from In­dia Scheme (MEIS) ben­e­fit for fab­rics and yarn would boost ex­ports," he said.

The En­gi­neer­ing Ex­port Pro­mo­tion Coun­cil (EEPC) has de­manded a re­bate on state levies to in­crease ship­ments.

Dur­ing April-Novem­ber this fis­cal, ex­ports rose 11.58 per cent to $ 217.52 bil­lion.

Since 2011-12, the coun­try's ex­ports have been hov­er­ing at around $300 bil­lion. Dur­ing 2017-18, the ship­ments grew by about 10 per cent to $ 303 bil­lion.

Pro­mot­ing ex­ports helps a coun­try cre­ate jobs, boost man­u­fac­tur­ing and earn more for­eign ex­change.

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