The Pharmaceutical Exports Promotion Council (Pharmexcil) has urged the Board of Trade to include tax sops and other incentives to the pharma industry in the new foreign trade policy to promote the pharmaceutical exports from the country. Board of Trade is a forum which advises the central government on policy measures connected with India's foreign trade'.
In a meeting of Board of Trade chaired by commerce and industries minister Anand Sharma, who is also the chairman of the Board, the Pharmexcil representatives recommended that the service tax for pharmaceutical exports to be exempted in the new comprehensive foreign trade policy. The new policy is expected to come out within a month and the Board of Trade is presently gathering feedback from various industry and trade segments to finalise the policy, it is learnt.
The Pharmexcil has also sought the Board to allocate a fund of Rs 1000 crore for the small and medium enterprises (SME) in exports and Registration, Evaluation, Authorisation & restriction of Chemicals (REACH) registration for exports of certain chemicals and intermediates to the European Union.
"We have appraised the need of the pharmaceutical exporters in the country to the Board of Trade prior to the release of new foreign trade policy. These micro level changes will help the industry to perform well in the exports business," says Venkat Jasti, chairman, Pharmexcil, after the Board meeting.
The Pharmexcil has sought to extend 150 per cent average reduction of duties on R&D activities for exports purposes. The pharmaceutical industry should be brought under single ministry for improved performance, informs Jasti.
The Board of Trade is a forum for continuous dialogue between Government and the trade and industry. And the Board, inter-alia, advises the government on policy measures connected with India's foreign trade in order to achieve the objective of boosting the country's exports.
The responsibilities of the Board includes advising the government on preparation and implementation of short term as well as long term strategies for enhancing exports in the light of emerging national and international trade scenarios.
The new comprehensive foreign trade policy is expected to have an emphasis on trade stimulus in addition to giving sops to exporters. The Commerce ministry is also considering rules that will directly increase exports especially to Latin America and African countries, according to recent reports.