Exporters seek policy push
Expensive overseas marketing a big challenge for exporters, more so for MSMEs: FIEO
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• Asks for enhanced allocations for RoDTEP scheme
• Increase import duty on plastic finished goods
• setting up of an Indian shipping line
• Reinstating exemption for duty free import of critical inputs for leather products
New Delhi: Exporters have demanded support measures, including enhanced allocations for RoDTEP scheme, high import duty on plastic finished goods, setting up of an Indian shipping line and reinstating exemption for duty free import of critical inputs for leather products, in the forthcoming Budget to promote growth of the country's outbound shipments.
They have also suggested fiscal incentives to address logistics challenges, and reduction of income tax on partnerships and LLP's to support MSME players. The Federation of Indian Export Organisations (FIEO) said that there is a need to encourage large Indian entities to build an Indian shipping line of global repute as it would help reduce dependence on foreign shipping lines. It said that the export sector is facing major issues due to rising freight cost and its dependence on global shipping companies.
"Overseas marketing is a big challenge for exporters, more so for MSMEs, as it entails a very high cost. We need to bring the Double Tax Deduction Scheme for Internationalizations to allow exporters to deduct against their taxable income...A ceiling of $5 lakh may be put under the scheme so that the investment and tax deduction are limited," FIEO Director General Ajay Sahai said. Mumbai-based exporter and Chairman Technocraft Industries Sharda Kumar Saraf said that Reimbursement of Duties & Taxes on Export production (RoDTEP) is one of the most important tools to support export marketing, but its present budget of about Rs 40,000 crore, is inadequate.
"We hope the finance minister will take cognizance of this fact and provide a suitable budget for RoDTEP," Saraf said.
