Government think-tank Niti Aayog is looking at tax-related issues, including inverted duty structure in three sectors of engineering, leather, and textiles, an official said on Monday.
The issues are likely to be taken up with higher authorities for their resolution to promote the growth of these sectors, the official said. Industry representatives of leather and engineering sectors said that they have shared a list of GST (Goods and Services Tax) and inverted duty structure-related issues with the Niti Aayog. “We expect the government to resolve those issues as it would help in promoting manufacturing and exports from the country,” an industry official said. The leather sector has recommended the reinstatement of basic customs duty on the import of wet blue, crust and finished leathers.
The exercise assumes significance as these three sectors are labour-intensive and contribute significantly to the country’s merchandise exports. The leather and footwear industry employs 4.42 million people and its exports stood at USD 5.26 billion in 2022-23. Engineering exports in the last fiscal aggregated at USD 107 billion, while the outbound shipments of the textile sector were about USD 36 billion in that fiscal year.