Budget 2017

Trade Body Seeks Fiscal Support In Budget For Boosting Exports

Exporters' body FIEO asked the government to create of an Export Development Fund for aggressive marketing particularly for MSMEs and VAT exemption for merchant exporters.
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India's exports rose 5.72 per cent to $23.9 billion in December.
India's exports rose 5.72 per cent to $23.9 billion in December.
New Delhi: The Federation of Indian Export Organisations (FIEO) on Monday sought fiscal as well as non-fiscal measures in the forthcoming Union Budget 2017-18 that will help boost shipments.

The exporters' body asked the government to create of an Export Development Fund for aggressive marketing particularly for MSMEs and VAT exemption for merchant exporters.

Finance Minister Arun Jaitley will present the Budget in Parliament on Wednesday.

On the duty front, FIEO has recommended customs duty abolition on shredded scrap, abolition of export duty on Bauxite of all forms and reduction of import duty on seaweed.

"Exports of Bauxite of all forms from India are expected to grow tremendously during the next 2-3 years. However, due to levy of export duty, exporters' competitiveness is reduced due to price advantage to their rival competitors," it said in a statement.

Further, it asked the government to exempt exports from service tax.

"First paying the service tax and then applying for refund of it increases transaction cost and time. Many times small exporters do not apply for refund as it takes lot of documentation and time," it added.

Recording positive growth for the fourth month in a row, India's exports rose 5.72 per cent to $23.9 billion in December on better performance by the segments of petroleum, engineering and pharmaceuticals.

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