Domestic manufacturers alert! Are local taxes making you uncompetitive? Here is an update from Modi government
Are you among those domestic manufacturers who keep facing the issues related to local taxes in India?
Are you among those domestic manufacturers who keep facing the issues related to local taxes in India? Modi government may soon give you some good news! According to a latest development, Commerce and Industry Minister Piyush Goyal has assured the industry about finding a solution for issues related to local taxes, such as electricity duty, as they make domestic manufacturers uncompetitive. The ministry is taking up the matter at all levels, Goyal said at a CII webinar on renewable energy.
"We are conscious of this problem particularly because other countries may not be having a coal cess or mandi tax or electricity duty, and therefore our manufacturers do get uncompetitive because of it. We have taken it up within the government and we are trying to assess what could be the mechanism...Our Indian manufacturers compete with let's say FTA (free trade agreement) imports or other imports coming from other parts of the world, face this problem. I assure you that my ministry is taking it up at all levels and we will find a solution to this," the Piyush Goyal said.
On increasing local content requirement in product manufacturing, he said India is not crazy about it, but the country will have to become self sufficient by strengthening domestic manufacturing.
"Let's say there is a particular component not available in India, it does not mean you import the whole equipment. So we will take up a practical and balanced view. We will have to strengthen domestic manufacturing in newer and newer items so that we can progressively move towards more domestic content, but we will have to do it sensibly without compromising quality and modern technology," Goyal said.
He said all countries are looking at balancing trade, adding that it should be a two-way process and all countries should get fair opportunities and reciprocity in terms of access for goods and services.
"Whichever country gives reciprocal access to their markets in a fair and balanced and transparent way, India wants to expand that engagement. So we are not against imports, what we are against is unfair treatment of India in certain parts of the world....We want the world to engage with us on fair terms," he added.
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