'GST will help exporters get rid of tax burden'

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SME Times News Bureau | 23 Apr, 2012
Exporter's body Federation of Indian Export Organisations (FIEO) has viewed that implementation of the much-awaited unified Goods and Services Tax ( GST) will help exporters to shed off burden of taxes.

"GST roll out will significantly benefit exports by adding to competitiveness through lower incidence of taxation and reducing cost of compliance by simplifying tax administration," said FIEO President M Rafeeque Ahmed in a press statement.

"At present, exports are losing 3-5% of FOB value due to non-rebating of state taxes and local levies like Sales tax on Petroleum and Diesel, Electricity duty,Turnover tax, Entry tax, Mandi tax, etc. Even two tier GST, as planned, will provide some respite to exporters," he pointed out.

Recently, an Empowered Committee announced that GST is likely to come into effect from April 1, 2013

Ahmed said that the sluggish growth in world exports in 2012 would compress demand and put pressure on prices. Therefore both the Government and exporters should look at ways and means of imparting competitiveness to exports.

He said that GST should be implemented as announced by the Empowered Committee on April 1, 2013 and hoped that the larger number of states assemblies would ratify the same.