CLE makes demands for budgetary concessions
India's Council for Leather Exports (CLE) has published a pre-budget memorandum containing a list of measures on excise and customs duties designed to help the sector meet an export target of $2.5 billion during 2002-03.
The measures include the duty free import of essential inputs, a cut in duty on machinery parts and a rationalisation of excise duties. The CLE has also demanded tax exemption for incomes of the Export Promotion Councils (EPCs). "The EPCs, being non-trading organisations functioning on a no-loss, no-profit basis, the income tax exemption sought would ease their financial burden," the council explained.
According to the CLE the implication for the government in terms of revenue would be mitigated by the increase in exports. If the measures were implemented it would cost Rs 1.32 billion ($27.16 million), but this would more than compensated for if exports increased to $2.5 billion in 2002-03 (an increase of US$317 million over 2001-02).
