New Delhi: Exporters' body
FIEO Tuesday urged the government to announce various measures such as
employment-
linked income
tax
benefits and set up a fund
for marketing purposes to boost the country's outbound shipments
in the upcoming Budget.
Federation of Indian
Export Organisations (FIEO) also demanded
tax deduction on R&D investments,
cut
in
corporate
tax, reducing customs duty on capital goods which are not produced
in the country, and higher budgetary allocations
for the Department of Commerce.
"We would urge the government to provide income
tax relief to units which provide additional employment
in export sector," it said
in a statement. Incentives should also be provided based on twin criteria of incremental growth
in exports and workers, it added.
For small exporters, it said marketing and showcasing of their products
in global markets require substantial expenditure and the current support extended through various schemes is grossly inadequate.
"We require an export development fund with a corpus of 0.5 per cent of export value, so that MSMEs aggressively participates
in international exhibitions and trade shows," it said.
Further the organisation said the budget should encourage domestic manufacturing with a focus on imports substitution.
"On customs front, the instances of inverted duty structure needs to be looked into," it said.
It added that the
corporate
tax reduction may be extended to all entities.
The country's exports grew by 9 per cent to USD 331 billion
in 2018-19.