Commerce Min assures industry of finding solution for issues related to local taxes

New Delhi: Commerce and Industry Minister Piyush Goyal on Thursday assured the industry about finding a solution for issues related to local taxes, such as electricity duty, as they make domestic manufacturers uncompetitive. The ministry is taking up the matter at all levels, he said at a CII webinar on renewable energy.

Goyal made the comments while replying to a question about Indian industry becoming uncompetitive at times while competing with global players because of various non-credible taxes, like electricity duty and taxes on fuel, and how the government is looking to adjust these under 'Aatmanirbhar Bharat'. "We are conscious of this problem particularly because other countries may not be having a coal cess or mandi tax or electricity duty, and therefore our manufacturers do get uncompetitive because of it.

"We have taken it up within the government and we are trying to assess what could be the mechanism...Our Indian manufacturers compete with let's say FTA (free trade agreement) imports or other imports coming from other parts of the world, face this problem. I assure you that my ministry is taking it up at all levels and we will find a solution to this," he said. On increasing local content requirement in product manufacturing, he said the country will have to become self sufficient by strengthening domestic manufacturing.

"Let's say there is a particular component not available in India, it does not mean you import the whole equipment. So we will take up a practical and balanced view. We will have to strengthen domestic manufacturing in newer and newer items so that we can progressively move towards more domestic content, but we will have to do it sensibly without compromising quality and modern technology," Goyal said.