Agra exporters seek IT rebate for export income
Vishal Sharma
New Delhi/ Agra. With the Union Budget round the corner, Agra exporters have again raised their three-year-old demand for income tax rebate for income generated from exports under Section 80 HHC, claiming that since the export industry was the single-largest contributor in the town’s economy, it deserved some incentives in the wake of globalisation and the tough competition posed by China.
The industrial sector of Agra thrives on the footwear, handicrafts, glass and carpet industries and these are largely dependent on small export-oriented units managed by local entrepreneurs, earning close to Rs 3,500 crore annually from exports.
A delegation of exporters recently met the Assistant Income Tax Commissioner (Agra) and gave him a charter of industry’s expectations from the forthcoming Budget, with the request that these be forwarded to the finance minister.
Later, talking to Business Standard, Prahlad Agarwal, managing director, UP
Handicrafts Development Complex, said the share of the handicrafts industry in export revenue earned by Agra was close to Rs 300 crore annually while the carpet industry earned Rs 600-700 crore.
The footwear and glass industries earned another Rs 1,200-1,300 crore each, and despite making such a big contribution in the country’s economy, exporters were not given much incentive.
He said just three years ago, exporters got 100 per cent income tax exemption on export-generated income but it was pulled back gradually and at present, there was no tax exemption on export income, which was “quite surprising considering the hardships the exporters had been facing over the past few years in the world market due to increased input costs and tougher price competition”.
Puran Dawar, managing director, Dawar Footwear, said the footwear industry was expecting a major windfall in terms of tax rebates and government funding in the Budget as the Union ministry for industries had indicated that it was going to ask the finance ministry to allocate more funds for the development of the leather industry in Agra in the Budget.
Even if the Budget did not come up to the expectations of industry, he said there was still high probability of the finance ministry reducing excise on leather footwear because most of Agra footwear was made by hand.
New Delhi/ Agra. With the Union Budget round the corner, Agra exporters have again raised their three-year-old demand for income tax rebate for income generated from exports under Section 80 HHC, claiming that since the export industry was the single-largest contributor in the town’s economy, it deserved some incentives in the wake of globalisation and the tough competition posed by China.
The industrial sector of Agra thrives on the footwear, handicrafts, glass and carpet industries and these are largely dependent on small export-oriented units managed by local entrepreneurs, earning close to Rs 3,500 crore annually from exports.
A delegation of exporters recently met the Assistant Income Tax Commissioner (Agra) and gave him a charter of industry’s expectations from the forthcoming Budget, with the request that these be forwarded to the finance minister.
Later, talking to Business Standard, Prahlad Agarwal, managing director, UP
Handicrafts Development Complex, said the share of the handicrafts industry in export revenue earned by Agra was close to Rs 300 crore annually while the carpet industry earned Rs 600-700 crore.
The footwear and glass industries earned another Rs 1,200-1,300 crore each, and despite making such a big contribution in the country’s economy, exporters were not given much incentive.
He said just three years ago, exporters got 100 per cent income tax exemption on export-generated income but it was pulled back gradually and at present, there was no tax exemption on export income, which was “quite surprising considering the hardships the exporters had been facing over the past few years in the world market due to increased input costs and tougher price competition”.
Puran Dawar, managing director, Dawar Footwear, said the footwear industry was expecting a major windfall in terms of tax rebates and government funding in the Budget as the Union ministry for industries had indicated that it was going to ask the finance ministry to allocate more funds for the development of the leather industry in Agra in the Budget.
Even if the Budget did not come up to the expectations of industry, he said there was still high probability of the finance ministry reducing excise on leather footwear because most of Agra footwear was made by hand.
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