The govt said that for the forthcoming Budget, it’s considering a package of tax incentives for the labour-intensive leather and gems and jewellery sectors to boost manufacturing & exports.
Leather comes under the ‘Make in India’ initiative which aims to increase its exports to $15 bn by 2020 from the current $6 bn. Recommended incentives include elimination of customs duty on imported leather machinery from the current 26.5% duty, excise duty reduction up to ₹2K and increase in the abatement rate to 35% from 25%.
The suggestions will help in assisting technology upgradation, capacity modernization, expansion of manufacturing sector and achieving the $15 bn target. For the jewellery industry, customs duty may be raised to 15% from the current 10% and excise duty will be abolished on imitation jewellery due to its huge demand in the US and EU.
