Refund taxes on exports: FM to states
The Centre has asked the state govts to refund their taxes as it has already given three packages worth Rs 5,200 cr to the Re-hit exporters.
By PTI |
NEW DELHI: The Centre on Wednesday asked the state governments to help rupee-hit exporters by refunding their taxes as it has already given three packages to the sector involving around Rs 5,200 crore.
"At present, the number of taxes including VAT, Octroi, Electricity duty are borne by exporters. They should be rebated or refunded, and I will urge state governments to look into this issue carefully," Finance Minister P Chidambaram said at the 54th meeting of the National Development Council.
He said that any state which relieves exporters of tax burden tends to gain as more exporters oriented industry would locate there.
"Hence, it is in the long term interest of the state to rebate or refund all taxes on exports," the Finance Minister said.
He said exports are under some stress due to the rapid appreciation of the rupee against the week dollar.
"Government of India has announced major relief packages and we are hopeful that these will bring some measure of relief to exporters," Chidambaram said.
However, regardless of the exchange rate, or any other external circumstance, it is an universally accepted principle that taxes would not be exported.
"The Central government rebates or refunds every tax that is payable or paid and if attributable to goods and services that are exported. I submit that state government should do the same," Chidambaram said.
The Finance Minister said unless the Eleventh Plan target of each of infrastructure areas like roads, ports, railway line and power plants are achieved, it would be difficult to reach the goal of 10 per cent GDP growth in the terminal year of the plan.
"At present, the number of taxes including VAT, Octroi, Electricity duty are borne by exporters. They should be rebated or refunded, and I will urge state governments to look into this issue carefully," Finance Minister P Chidambaram said at the 54th meeting of the National Development Council.
He said that any state which relieves exporters of tax burden tends to gain as more exporters oriented industry would locate there.
"Hence, it is in the long term interest of the state to rebate or refund all taxes on exports," the Finance Minister said.
He said exports are under some stress due to the rapid appreciation of the rupee against the week dollar.
"Government of India has announced major relief packages and we are hopeful that these will bring some measure of relief to exporters," Chidambaram said.
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However, regardless of the exchange rate, or any other external circumstance, it is an universally accepted principle that taxes would not be exported.
"The Central government rebates or refunds every tax that is payable or paid and if attributable to goods and services that are exported. I submit that state government should do the same," Chidambaram said.
The Finance Minister said unless the Eleventh Plan target of each of infrastructure areas like roads, ports, railway line and power plants are achieved, it would be difficult to reach the goal of 10 per cent GDP growth in the terminal year of the plan.
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