rewrite this title and make it good for SEOExporters’ budget wishlist: tax sops, inverted duty structure correction, and more

New Delhi: Exporters on Thursday sought a series of measures, including tax incentives, and rationalisation of import duties, in the upcoming Budget. Apparel exporters sought fiscal incentives, including scrips and an increase in the interest subsidy rate for loans to help the sector tide over US tariff shocks while engineering exporters sought a cut in income tax for all non-corporate manufacturing MSMEs to 25% from 33% now. Leather exporters want the basic customs duty exemption on certain leathers to be reinstated.

“We have proposed to reduce the income tax rate to 25% for manufacturing MSMEs operating as partnerships, LLPs, or sole proprietorships, bringing them at par with private limited companies. We have also suggested to release 90% of the GST refund immediately, with the remaining 10% after verification,” said Pankaj Chadha, chairman, EEPC India.The Federation of Indian Export Organisations (FIEO) has suggested correcting the inverted duty structure in synthetic yarns and fibres, electronic components, chemical and plastics along with development of Indian global-scale shipping lines.

It said that synthetic yarns and fibres attract higher customs duties than finished fabrics and garments, which adversely impacts the textile and apparel value chain. Similarly, electronic components, such as printed circuit boards, connectors, and sub-assemblies, face higher duties compared to imported finished electronic products, discouraging domestic value addition.

In the chemical and plastics sector, basic raw chemicals and polymers often attract higher duties than downstream finished products, undermining Indian manufacturers.

“Correcting these anomalies by lowering or restructuring duties on raw materials will reduce production costs, ease working capital pressures, encourage domestic manufacturing, and strengthen India’s export competitiveness,” said FIEO President SC Ralhan and also proposed extending the 15% concessional corporate tax rate for new domestic manufacturing units for at least another five years.AEPC Chairman A Sakthivel has suggested a reduction of GST rates on textile machinery and a new technology upgradation scheme for micro units. The Council for Leather Exports has requested to reinstate basic customs duty exemption on the import of bovine crust (semi-finished leather derived from cattle hides) and finished leathers.