New Delhi: The government is inviting suggestions from trade and industry bodies on a list of items that it has identified for tax exemptions. Trade and industry bodies, importer, and exporters can express their views on the list and submit their responses by August 10 on the ‘MyGov.in’ portal.
The government shared a list of items the government said that were identified for tax exemptions.
“Suggestions are invited in respect of their review which may include the need for a review of the notification, amendment in wording of the notification for bringing clarity, consolidation, other relevant factors such as the extent of use, etc,” it added.
Items such as fabrics, games/sports requisites, magnetron for microwave manufacturing, specified parts for PCB, set-up box, routers, broadband modem, contraceptives and artificial kidney are on the list.
Other times on the list are magnetic tapes, photographic, filming, sound recording/ radio equipment, parts/ raw material for the manufacture of goods supplied for off-shore oil exploration, specified machinery/ parts covered in the textile industry.
In her 2020-2021, Budget Speech Union Finance Minister Nirmala Sitharaman had said that the government would allow tax exemptions on certain items after consultations from the industry bodies.
This is not the first time that this exercise has been conducted. Last year, The Central Board of Indirect Taxes and Customs (CBIC) had also invited suggestions on a list of items that were identified for tax exemptions.
Exemptions from customs duty have been given in public interest from time to time and a review of the Customs laws and procedures would help to align them with the needs of changing times and ease of doing business.
Abhishek Jain, Tax Partner, EY, said the government seems to be looking at exemptions prevalent for divergent sectors as is evident from the list of targeted Customs exemption entries released by the government.
“As such, the various industries should see if their goods are being covered in the said exemption entries, and provide their recommendation to the government in a timely fashion, so as to ensure certain scope for further liasioning in case the government has any further queries.
“The suggestions are most likely are to vary from sector to sector considering parameters such as how much that sector is ready to manufacture the currently imported product in India, the possible threat to the domestic players in case of further customs duty reduction,” Jain added.
With inputs from PTI