Mechanism for refunding state taxes in the offing : Kamal Nath

Mr. Kamal Nath, Union Minister for Commerce and Industry said that the Government of India is drawing up a mechanism for refund of taxes to exporters levied by the State Governments to make exports more competitive.

While addressing delegates to the 102nd Annual Session of PHD Chamber in the Capital today, the Minister said that the State Governments should be sensitized about the benefits they would accrue in terms of attracting more investments and generating more employment by augmenting exports. “No tax should be exported that will erode the competitiveness”, he added.

Mr. Nath while speaking on the sidelines of the meeting said that the gradual reduction of subsidies by the Government would enable India to have better negotiating power in WTO. It is necessary that the US & EU take cognizance of these developments taking place in India. He also clarified that the present increase in the commodities prices have nothing to do with the retail sector and added that the Government is monitoring the supply side to take timely and adequate action.

Mr. Nath said that the second tier of reforms should be related to the governance. With the accelerated growth in the first phase of reforms, it is necessary to take up such issues for change of mindset of the people. State level participation in this phase of reforms is important. The second phase of reforms he said should address food and fuel challenges since India is presently in a paradox of affluence in the midst of poverty.

Mr. Sanjay Bhatia, President, PHD Chamber mentioned about the challenges before the country particularly in the area of governance. Many important steps have to be taken to ensure inclusive growth and for augmenting employment and income to the people.