GTRI Urges Govt to Reduce Import Tax on Goods to Minimize Export Schemes

• Think tank GTRI suggests reducing import duties on inputs and capital goods to reduce the need for existing export schemes in India.
• The EU and the US view these schemes as subsidies and impose countervailing duties, affecting over 20% of India’s outbound shipments.
• India currently implements various export schemes to enhance competitiveness in the global market.
• GTRI recommends improving the structure of export schemes, raising disputes in the WTO, resisting premature withdrawals of schemes, and rationalizing customs duty structure.
• Import duty reduction on inputs and capital goods could lessen the need for export schemes.
• GTRI suggests improvements in export schemes, such as implementing a robust system to trace raw materials, reducing import duties on select capital goods, and conducting regular checks for compliance with WTO rules.
• The government’s decision to terminate the MEIS scheme may have been influenced by redirecting funds to the PLI scheme.
• The Indian government needs a balanced approach to align export schemes with global trade rules and harmonize domestic economic interests with global trade obligations.

Source: a2ztaxcorp.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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