New Delhi, Jan 13 (KNN) Be it a domestic import or international import of raw materials, the high duty charges are enough to make them 'less reachable' to industries, who buy raw materials for their production of various goods.
Many Micro Small and Medium Enterprises (MSMEs) have raised the issue of duty on raw materials being higher than that on finished products which makes import more comfortable than manufacturing.
What can be done in this regard to sort out this issue in the forthcoming budget 2020-21 so that MSMEs will get some relief? T know the same, KNN India spoke to The Federation of Indian Micro and Small & Medium Enterprises (FISME) who raised this issue in month of December last year in pre-budget consultations meet with Finance Minister Nirmala Sitharaman.
''We have already notified the Finance Minister of the same and said that there should be less duty on raw materials. We also suggested her that raw materials should be available on international price,'' said FISME President Animesh Saxena.
When asked about the future plan of action in this regard, Saxena said that in future the apex body for MSME associations in the country, FISME, will be pushing the same with the government.
"If India really wants to be a part of the global value chain, these raw materials should be made available on international prices, duty should be kept low for the raw materials and finished product should be on higher duty.''
Speaking on the same, Manesar Industries Welfare Association (MIWA) Vice President Manmohan Gaind supported the view and said, "Raw material prices should be kept at lower rate and duty on final products should be kept at a higher rate."
''Raw materials is basically used by manufacturers, so what government needs to do that they can levy less GST on manufacturers and once he converts that into product then that product can be charged at 18 per cent. Government will not lose anything since it takes care of all the refund that government has to do. So, all that is take care of,'' he added.
''This will improve the liquidity of MSMEs,'' he added.
Published On : 13-01-2020
Source : KNN India