Union Budget: FIEO asks govt to provide double tax deduction to MSMEs for international marketing

New Delhi, Jan 29 (KNN) The Federation of Indian Export Organisation (FIEO) has urged the Finance Minister Nirmala Sitharaman to support MSMEs by providing a double tax deduction for overseas marketing. 

Explaining with an example he said, for every USD 1000 spent on global marketing, USD 2000 may be provided as tax deductions under the income tax for specified kinds of overseas marketing.

The federation has stated that the upcoming union budget to be presented on 1st February will majorly focus on MSME and Export sector. 

Highlighting the buoyancy in Indian exports, FIEO President A Sakthivel said that India is within the range of reaching the target of USD 400 billion during the current fiscal year. 

He assured that the order booking position of exporters across sectors is extremely encouraging and a rapid growth trajectory is expected in next fiscal as well. 

Pointing out some of the challenges, he said logistics, shortage of containers, increase in freight are areas to be a resolved which might drastically impact exports. 

He suggested Production Linked Incentive (PLI) kind of scheme for container manufacturing to encourage domestic manufacturing of containers addressing some cost disadvantages. 

It has also suggested to extend The Emergency Credit Linked Guarantee Scheme (ECLGS) till 2023.