The impact of tax challenges in the engineering, leather, and textile industry has alarmed the thinktank of India, NITI Aayog to look upon the list of issues submitted by the industry representatives.
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According to an official, the government think tank NITI Aayog is examining tax-related concerns, including the inverted duty structure in the three industries of engineering, leather, and textiles.
The concerns will probably be brought up with higher authorities so that they may be resolved to encourage the expansion of these areas. Industry members from the engineering and leather sectors said that they had given the NITI Aayog a list of concerns regarding the Goods and Services Tax (GST) and the inverted tariff structure.
An industry executive stated, “We expect the government to resolve those issues as it would help in promoting manufacturing and exports from the country.” The import of wet blue, crust, and completed leathers should once again be subject to a basic customs levy, according to the leather industry.
The exercise is noteworthy since these three industries employ a lot of people and account for a large portion of the nation’s exports of goods. 4.42 million people are employed in the leather and footwear sector, and in 2022–2023, its exports were 5.26 billion USD. Exports of engineering products were USD 107 billion over the previous fiscal year, compared to USD 36 billion in exports of textile products.61
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