By BW CFO World Online Bureau
Release of the pending incentive dues by the government will help ease the liquidity at such challenging times
The government’s decision to release the pending export incentive dues worth Rs 56,027 crore will help the sector in meeting the liquidity concerns and maintaining cash flow during the current challenging times, according to exporters. The government on Thursday said it will release Rs 56,027 crore to exporters against pending tax refunds under different incentive schemes for outbound shipments. The amount will be disbursed to more than 45,000 exporters.
Addressing to the move of clearing pending tax dues, former President Federation of Indian Export Organisations (FIEO) S K Saraf said that the delay in payments has affected cash flow of exporters in MSME sector particularly.
“This payment will be a great relief to exporters in these challenging times. I hope this payment is made expeditiously. It will save a lot of MSMEs from a certain extinction,” Saraf said. Sharing similar views, Ludhiana Hand Tools Association President S C Ralhan said that the move would help in promoting exports.
“Container shortage and rising freight rates will also required urgent attention of the government,” Ralhan said. Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that it will help exporters bag additional export orders for the coming festive season and thus help the country achieve its merchandise export target of USD 400 billion.
“The government has made a smart move by deciding to release Rs 56,027 crore against pending tax refunds to exporters in the current financial year itself. Apart from supporting exporters that are struggling to meet their working capital needs, the extra cash in hand will enable them to commit to bigger export orders,” Sakthivel said.
Sakthivel, who is also FIEO President, said that for the MSME sector, the decision has come as a booster dose for them as it would help them to be able to complete their booked order more efficiently. “The move will help the sector in meeting the liquidity concerns and maintaining cash flow of the exports sector thereby further facilitating in addressing the export demand in the international market,” he added.
Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, said that this is a massive relief measures announced for the exporters. “Release of Rs 56,027 crore will boost the sentiments of the small exporters to expand their export horizons and connect well with the global value chains,” he said.