FIEO optimistic about meeting US$ 126 bn export target in 06-07

New Delhi, Jan 30 (UNI) The Federation of Indian Exports (FIEO) today exuded optimism about meeting the export target of 126 billion U S dollars in 2006-07 and demanded setting up of a market access fund and introduction of Goods and Services Tax (GST) for value-added exports.

Newly-elected FIEO President Ganesh Kumar Gupta, releasing a memorandum of exporters' demands, told newspersons here that "Exporters are optimistic that the 126 billion U S dollars export target would be achieved. We are also hopeful that exports would grow at 25 per cent in 2007-08." Stating that the federation expected exports to grow at a rate of 20 per cent annually over the next five years, Mr Gupta said fluctuation in dollar value was one of the reasons for slump in exports in December and stressed the need to address the issues of infrastructure and lack of funds to plug the gap.

Regarding the market access fund which forms part of the federation's pre-budget proposals, he said the fund would help exporters to diversify the country's export market and introduce value-added products in existing markets.

The fund would help in undertaking market studies, surveys, product testing warehousing and launch of an aggressive promotion strategy.

Canada, Malaysia and Scotland, he noted, had already such a fund in operation.

Regarding the GST, Mr Gupta said that Finance Minister P Chidambaram had announced a road map for GST but there had not been much progress in this direction. Despite the Finance Minister announcing the proposed roadmap in the last budget, the issue was still pending and hoped that the tax would be enforced in 2007-08 to replace the existing tax.

"We as the apex chamber are very keen that GST should be introduced in the country as it will not only provide full rebate of duties to exporters but would usher in a clean and transparent tax administration," he added.

On the refund of the Value Added Tax (VAT), Mr Gupta said "Our experience with VAT refund has not been satisfactory at all which is cumbersome and time consuming" due to delays lasting from a couple of months in Delhi to one year in the case of Haryana.

On revenue loss of Rs 35,000 crore per annum suffered by the country on the export front, the FIEO President pointed out that this consisted of refund of duties the exporters were paying on finished goods.

He was unequivocal about the necessity of having Special Economic Zones saying that "we welcome the Government's initiative towards SEZs." "By December 2007, it is expected that investments of Rs 100,000 crore, including Rs 25,000 crore FDI will take place in the SEZs and employ 500,000 people," he said.

UNI