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Exporters want easier tax norms
January, 20th 2010

Exporters are looking at simpler tax norms and continued stimulus from the government in 2010-11, even as shipments from India enter a crucial phase as they move into a growth trajectory. These expectations will reflect in a wishlist Federation of Indian Export Organisations president A Sakthivel presents during a budget-making discussion on Wednesday.

Exports have started showing positive growth in the last two months after over a year of slide. Shipmets rose 9.4% to $14.6 billion. Total exports are pegged at about $153 billion in 2009 so far, which is lower than 2008. The commerce ministry and analysts favour more stimulus for the sector and warn that any pullback at this point may reverse the situation.

Exporters are seeking a turnover tax in lieu of income-tax with a view to reducing administrative burden and resultant costs. The turnover tax will dispense with all other direct taxes and exemptions, including depreciation.

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