Vol. LXI No. 88 th WEDNESDAY 19 MAY 2021
See Pg. 4 - 5
E-Mail: dailyshipping@gmail.com
Exporters awaits release of Tax refunds worth Rs 40,000 cr as liquidity crisis continues Commerce Secretary Anup Wadhawan recently said that the new rates would be notified ‘very soon’ NEW DELHI: The world of Indian exporters is in a turmoil. They are yet to receive an estimated Rs 40,000 crore worth of tax refund under the erstwhile Merchandise Exports from India Scheme (MEIS), even as they wait for clarity on its replacement, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. According to the apex body of exporters, the Federation of Indian Export Organisations (FIEO), they along with other export promotion councils have recently informed the government that the ensuing liquidity crisis is affecting outbound trade. In a recent letter, the Ministry of Commerce has been told
that crucial export sectors such as engineering goods, chemicals, leather and leather goods, heavy industries and key micro, small and medium enterprises (MSME)-run sectors such as handicraft and carpet exports, have taken a massive hit, as they are unable to accept new orders. The exporters community has also proposed a list of steps to the government, which can be quickly implemented to deal with the issue in the short term. The latest is a suggestion for the government to release tax-free bonds attracting 6 percent annual interest, with a three-year lock-in interval to present certainty of refund and guarantee liquidity for exporters. Cont’d. Pg. 15
Truckers’ losses mount to Rs. 42,000 cr due to lockdowns, rentals slump by 5-7% : AIMTC NEW DELHI: With several state governments across India imposed strict lockdowns to curb the rising cases of Covid-19, the logistics and transport sector is one of the most impacted ones. The trucking industry has witnessed its losses increased to around Rs. 42,000 crore from the start of FY22 till the mid of May 2021, as revealed by the All India Motor Transport Congress (AIMTC). As AIMTC claims, the transport sector, the lifeline of the country and essential services provider to the people, bears the first impact of the lockdowns and the curfews.
The organisation claims that with almost 80% of India under lockdown, around 65% of the total 95 lakh strong truck fleet in the country is standing idle, as there is no demand. According to the Indian Foundation of Transport Research and Training (IFTRT), the slump in factory output due to the lockdowns in states has resulted in a slump in truck rentals on the key routes by 5-7% in the past 15 days. With this, the trucking industry’s per day losses have gone up to Rs. 1,600 crore in May 2021 from Rs. 400 crores at the beginning of April 2021. Cont’d. Pg. 15