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`Lowering taxes holds the key to more exports`
New Delhi, Apr 27: Fearing that a larger European Union would hit India`s exports, experts today stressed on reduction of taxes to become competitive.
New Delhi, Apr 27: Fearing that a larger European Union would hit India's exports, experts today stressed on reduction of taxes to become competitive.
The EU expansion from 15 to 25 countries from May 1 this year would adversely hit India's textiles, jute and chemical exports due to preferential tariff applicable to inter-country export, Vijaya Katti of Indian Institute of Foreign Trade said at a PHDCCI conference here.
"For exports to become competitive, manufacturing should be given more importance and the domestic tax rates reduced," said Sunil Kumar of Ernst & Young.
Pointing that the tax rates in India are higher than the rates in ASEAN nations, Kumar said the VAT rate in the ASEAN is just five per cent against an average rate of over 25 per cent in India.
The import duties in the ASEAN region range between 10-12 per cent, he said adding India has to take into account these rates while making strategies to boost up its global exports.
Bureau Report
"For exports to become competitive, manufacturing should be given more importance and the domestic tax rates reduced," said Sunil Kumar of Ernst & Young.
Pointing that the tax rates in India are higher than the rates in ASEAN nations, Kumar said the VAT rate in the ASEAN is just five per cent against an average rate of over 25 per cent in India.
The import duties in the ASEAN region range between 10-12 per cent, he said adding India has to take into account these rates while making strategies to boost up its global exports.
Bureau Report