An official from the government think tank Niti Aayog said on Monday that it is looking into tax-related issues, including inverted duty structures in three industries: engineering, leather, and textiles. The issues are likely to be taken up with higher authorities for resolution to promote the growth of these sectors, the official said.
Industry representatives from the 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 year aggregated at USD 107 billion, while the outbound shipments of the textile sector were about USD 36 billion in that fiscal year.
