SME Times News Bureau | 06 Oct, 2020
EEPC India on Monday said that India can achieve a higher exports target
only if domestic taxes do not get added to the costs of shipments.
Lauding
Commerce and Industry Minister Piyush Goyal for calling for an
aspirational export target of $1 trillion, EEPC India Chairman Mahesh
Desai said: "We would only need an enabling environment where domestic
taxes are not exported and high costs of transactions in the form of
inadequate infrastructure are reduced."
He pointed out that
exporters were only partly compensated for the domestic taxes, while
they continue to incur high costs of infrastructure.
Desai cited
a recent study of the Export-Import Bank of India that stated that
immediate refunds of the GST can itself add to exports by 7 percentage
points and overall GDP by two percentage points.
Likewise, the
same EXIM Bank study underscored the need for reduction of costs and
streamlining of procedures at the ports, along with quicker cargo
clearances by the customs authorities.
Desai said in a highly
competitive international markets, quality and cost competitiveness
would be an important differentiators.
In addition, he called for grater government support, especially during the Covid-19 pandemic.