Govt Sets Up Key Panel For Export Sector
“Besides, it would identify both export-hit sectors and their challenges: Reports
NEW DELHI: In a move to counter the hefty tariff imposed by the US, the Centre has set up a committee to examine the tax and export clearance issues being faced by manufacturing units and suggest measures to further streamline the system. The committee will examine the existing export-related tax structures — both customs duties & export incentives, export clearance procedures — to identify and monitor their impact on the manufacturing sectors’ competitiveness and export performance, according to an official source.
As per the sources, the committee will be represented by top officials from the finance ministry, department for promotion of industry and internal trade (DPIIT), department of commerce, directorate general of foreign trade (DGFT) and the RBI. It will also include special invitees from industry chambers, Federation of Indian Export Organisations, export promotion councils, and consultancy firms. “The committee is expected to submit its report in two months,” the source said.
The official said that the committee would examine the existing export-related tax structures, including both customs duties and export incentives and export clearance procedures to identify their impact on the manufacturing sectors’ competitiveness and export performance, and suggest refinements or alternatives, if needed.
“Besides, it would identify both export-hit sectors and their challenges. These sectors include engineering, pharmaceuticals, electronics, chemicals, agro and processed food, textiles, leather, gems and jewellery. The panel would also study and recommend global best practices in export taxation and customs facilitation, and propose actionable policy reforms to streamline processes,” the source said.
Indian manufacturing sectors are facing issues because of the imposition of a steep 50 per cent tariff on Indian goods entering America from August 27. The high duty will make India’s labour-intensive goods less competitive in the US market compared to those from Vietnam, Bangladesh, and Thailand, which face lower tariffs.