Commerce department asked for removal of fringe benefit tax on exporters

Commerce department has asked for the removal of fringe benefit tax (FBT) on exporters in its list of key reform proposals to be included in an ambitious package being readied by officials for the new government’s 100-day reform agenda.

It has asked for removal of this tax imposed on exporters as it acts as a disincentive for them to travel to look for new buyers and participate in business fairs. With Indian exports taking a severe beating in the past six months, the stress is expected to be on reducing operational costs of exporters.

W h i l e the previous government had been considering removing fringe benefit tax on exporters, the new one is expected to act on the issue.

The commerce department has also called for social security scheme for plantation workers who toil in harsh conditions.

Implementation of the two free trade agreements, one with the tenmember Asean and the other with South Korea, which are ready to be signed, is also high on the department’s agenda.

Other issues like extension of tax benefits given to 100% export oriented units (EOUs) and Software Technology Parks of India beyond March 31, 2010 and extending interest rate subvention or discount given to certain sectors, is also being pushed by the commerce department, but these are likely to be considered for the full budget.

Categories: Income Tax


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