Dr Rajiv Kumar?s attack on export promotion councils (EPCs) was irrelevant to his article (?Exports: decisive action needed?, Nov 16), which was otherwise interesting. He has championed the cause of small & medium exporters (SMEs) without discussing the real issues affecting them: service tax and ocean freight.
Despite assurances from the finance minister that the service tax on exports will be removed, I find that Concor, shipping lines, clearing & forwarding agents and many other services relating to exports still charge the tax. Why should we talk of giving this or that relief without asking for the removal of service tax first? Another point Dr Kumar has failed to touch upon is the ever-increasing ocean freight. Every third month, shipping lines impose GRI and increase BAF and CAF. Besides, the heavy container penalty imposed recently has impacted India?s export of heavy goods. On the whole, ocean freight has increased by almost 100% in just one year, and the most affected are low-value products.
Big exporters have their own lobbying networks but SMEs need an organisation to take up their cause. EPCs have been working as a front for SME exporters. I?ve been associated with Capexil, an EPC, for the last 34 years, and I can testify that my organisation has always been of utmost help to SMEs.
?Surendra Gulati, Chairman, Capexil
Past Jinnah?s djinn
It?s been quite a comeback for the man (?Advani is BJP?s PM candidate?, Dec 11) who fell out of the RSS?s grace two years back. Can a moderate Advani be a shoo-in PM?
?J Anand Menon, Kochi