Reduce Taxes On Exports For Better Forex: ASSOCHAM

Though the Andhra Pradesh government has permitted the export of 10,000 tons of molasses, the imposition of an export-pass-fee of Rs. 2500 PMT has made the commodity uncompetitive in the international markets.

Stressing the urgent withdrawal of the export-pass-fee, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has stated that other sugar producing states like Gujarat, Maharashtra and UP have not been charging any such fee, and that all the export orders are being placed with them only.

The chamber Secretary General DS Rawat said the government of India or state government are not charging any export duties, taxes, cess, fee for export goods unless there is a specific reason.

The chamber found that the current FOB export price of Molasses is USD 110 PMT which comes to Rs. 6,000 approximately per ton, and the government of Andhra Pradesh has been charging Rs. 2,500 per metric ton as export-pass-fee ie, 42.5% of the FOB value of export.

The state government has vide notification No. GO. Ms. No. 1292. Dated 10.11.2008 (clause 14.2) imposing an export fee of Rs. 25,000 PMT on the export of molasses outside the country.

Advocating for urgent corrective measures, the chamber said that in case the export-pass-cess was removed, huge quantities of molasses could be exported, and the country could earn precious foreign exchange. (INN)