Engineering exporters seek exemptions in 2017 budget
The Dollar Business Bureau
It is expected that the next budget will include decisive fiscal measures for engineering exporters which might give a boost to the business sentiment that got hampered after the move of demonetisation.
As per the suggestion given by the engineering exporters' body EEPC India to the Finance Ministry, exemptions should be given under the Income Tax with regards to the profits derived by the exporters from transfer of all kinds of incentive scripts like those under the Service Exports from India Scheme (SEIS) and Merchandise Exports from India Scheme (MEIS).
The body also wants the ministry to consider a Technology Upgradation Fund Scheme for the MSMEs in the engineering sector. “Given that 40% of engineering exports come from the MSME sector, it is an indispensable pre-requisite to set up a Technology Upgradation Fund Scheme which provides access to funds for technology upgradation at low cost. It is suggested that a provision of Rs.500 crore be provided in the Union Budget for a Technology Upgradation Scheme for the MSME engineering sector,” EEPC India said.
The introduction of GST is also one of the factors that would likely to affect the export promotion schemes due to the unclear picture of the new tax regime. This is the reason the body has requested that the refunds of taxes in the export chain be directly credited to the bank accounts of exporters.
According to EEPC India Chairman T S Bhasin, Finance Minister Arun Jaitley should also look at a special package for the exporters in the form of both fiscal incentives and procedural de-bottlenecks in the 2017-2018 budget.
“Union Budget would be crucial for reviving investors’ sentiments followed by implementation of the GST which will further make sure that the complete value chain in the economic activities is integrated and mapped digitally through GST network,” said Bhasin.