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The Engineering Export Promotion Council (EEPC) set an export target of $23 billion for this fiscal year up from $19.18 billion and said that the amount could even go up by another USD 1 billion from miscellaneous items. However, as promised by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), they wanted the moneys from the export of the existing 292 miscellaneous items to be brought under the engineering accounting head. The 20% increase in the target will help engineering maintain 18-19% share.
The EEPC pointed out several issues that are stopping the rapid growth of engineering goods and their export. Firstly, there is a severe lack of accurate monitoring and reporting mechanisms seem to have created a 60% difference between the data from export organizations and the DGCI&S. Secondly, there seem to be service taxation inconsistencies where goods on sea and airfreight are exempted from such taxation while those being transported inland are. Thirdly, there are inordinate delays in Value-Added-Tax refunds which need inter-ministerial and departmental coordination. Fourthly, there is a lack of coherence of policy dealing with raw materials. Fifthly, there is unnecessary taxation on export promotion councils. Sixthly, there is ambiguity of recent External Affairs Ministry notification requiring prior approval for foreign delegations.
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