Fix duty drawback rates
The all-industry rates of duty drawback revised on Thursday shows only a marginal raise on 102 export items. The increase does not fully offset the taxes levied on raw materials, components, consumables that goes into export production.
The government should immediately look into raising duty drawback further to fully cover all the levies to make exports more competitive. With oil prices going up, rupee appreciating, there is hardly any workable profit for export trade. The sufferings of the leather industry can be wiped out if 100 per cent taxes is compensated by way of duty drawback, not a mere 0.3 per cent. Further, in line with ease of doing business, the Ministry of Commerce and Industry should recommend a proposal to the Ministry of Finance, which can be incorporated in the Budget — a self-fixation of brand rates of drawback by exporters themselves. Wherever duty drawback rates are not fixed as all-industry rate category, exporters have to seek brand rate fixation which takes a lot of time and a plethora of documents have to be submitted to get the rates fixed. Instead, exporters can self-calculate the duties that have gone into export production and straightaway claim the brand rates similar to all-industry rates. Such an easy method of claiming brand rate duty drawback will alleviate exporters’ difficulties and save time. There are a host of items where import and re-export happen with value addition, but all-industry rates are not available. A serious thinking on these lines will enhance trade among Asean countries and may even double the total export value with these countries..
A Sathyanarayana New Delhi
The all-industry rates of duty drawback revised on Thursday shows only a marginal raise on 102 export items. The increase does not fully offset the taxes levied on raw materials, components, consumables that goes into export production.
The government should immediately look into raising duty drawback further to fully cover all the levies to make exports more competitive. With oil prices going up, rupee appreciating, there is hardly any workable profit for export trade. The sufferings of the leather industry can be wiped out if 100 per cent taxes is compensated by way of duty drawback, not a mere 0.3 per cent. Further, in line with ease of doing business, the Ministry of Commerce and Industry should recommend a proposal to the Ministry of Finance, which can be incorporated in the Budget — a self-fixation of brand rates of drawback by exporters themselves. Wherever duty drawback rates are not fixed as all-industry rate category, exporters have to seek brand rate fixation which takes a lot of time and a plethora of documents have to be submitted to get the rates fixed. Instead, exporters can self-calculate the duties that have gone into export production and straightaway claim the brand rates similar to all-industry rates. Such an easy method of claiming brand rate duty drawback will alleviate exporters’ difficulties and save time. There are a host of items where import and re-export happen with value addition, but all-industry rates are not available. A serious thinking on these lines will enhance trade among Asean countries and may even double the total export value with these countries..
A Sathyanarayana New Delhi
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