In the Budget proposals, FIEO has suggested the government to provide fiscal support to units who provide additional employment in export sector in Budget 2018 as this will help the workers to migrate from informal employment to formal employment.
Finance Minister Arun Jaitley will present Union Budget on February 1. Expectations are high from the Modi government in this year’s budget. The central government should take desirable measures to eliminate the technical glitches in the Goods and Services Tax Network (GSTN), according to Federation of Indian Export Organisations. Apart from this, the industry is keen to focus on the job work in this year’s Union Budget. The industry, however, is quite cheerful to witness the pro-active action by the GST council as it has resolved many issues which were earlier faced by the stakeholders. This will be the Modi government’s fifth and final full budget before the big 2019 Lok Sabha elections.
In the Pre-Budget Consultation Meeting with Finance Minister Arun Jaitley, Ganesh Kumar Gupta, President, Federation of Indian Export Organizations, addressed the fact that one of the major concerns for the export industry is the affected job workers due to the high rate of job work and maintenance of detailed record, throughout the country. As most of the workers in this sector are illiterate or semi illiterate, they are incapable of maintaining invoice or challan.
FIEO recommended exemption of job work from GST in its Pre-Budget Memorandum 2018-19. The move has been suggested in order to eradicate the compliance burden on job worker. If complete exclusion is not possible due to any reason, all job works may be subject of 5% GST, so as to avoid any kind of classification discord and also, it will bring uniformity for ease in administration.
The measure of lowering the tax rate has already been taken for the Textile industry by the GST council, last year.
Considering that generating job opportunities is one of the top priorities of Modi government in Budget 2018, FIEO in its Budget proposals raised the issue that creating employment opportunities is one of the most challenging tasks for this sector. The export body is concerned over providing employment to millions of people who are seeking jobs on month on month basis.
In the Budget proposals, FIEO has also suggested the government to provide fiscal support to units who provide additional employment in export sector in Budget 2018 as this will help the workers to migrate from informal employment to formal employment.
Ahead of Budget 2018, the matter of producing employment growth was also addressed during Narendra Modi’s meeting with country’s top 40 economists and experts on “Economic Policy The Road Ahead”, which was organized by NITI Aayog last week. According to the experts, as 20% of Indian youth are jobless, the Modi government should target on job growth.