Other suggestion included the removal of all levies including sales tax and octroi for procurement of raw materials domestically, packing materials, etc for exports from the purview of central or state governments. Alternatively, the council wants reimbursement by way of CCS as was being done prior to July 1991. Exempt all export related incentives and reimbursements like special import licence, Exim Scrip, REP, DEPB from any state levies.

CHEMEXCIL has asked the government to allow units which export more than 50 per cent of their production, total freedom to hire and lay-off workers accordingto their needs, and amend labour laws to enable all exporting units to maximise production and exports at the lowest cost.

The council has also asked the government to announce the trade policy for the full five year term of parliament after discussion with export promotion councils and FIEO. Further it has asked that no structural changes in the Trade Policy should be made thereafter without the consent of these bodies.

On the micro front the council has asked the government to bridge the gap between policy intentions and actual implementations. CHEMEXCIL has requested the government to take up the issue of non-tariff barriers and regional protectionism practised by the European Union and other countries towards Indian products.

Further, the council has requested the government that all commitments made by the exporters based on the then existing EXIM, customs and excise policies need to be protected through proper transitory arrangements. In other words, the commitments made by the exporter as on 31stMarch 1998 based on the then existing policies should not get affected because of budget, EXIM policy and other fiscal policies announced in April.

CHEMEXCIL has also pointed out the shortcomings of small scale sector in technology upgradation dur to lack of funds despite the sector contributing to the bulk of Indian exports. Adequate institutional support is thus needed to support the SSI units. The council has asked that banks should give credit facilities against excise refund application made to the excise department. On the receipt of the amount from excise department, the same could be set off with the bank. Similarly, in the case of duty drawback also, it is requested to introduce the scheme.

The export promotion council has pointed out that the Indian industry is increasingly being placed at a relative disadvantage and its competitiveness is getting eroded with higher incidence of commodity taxes and high interest costs. Sales tax and octroi together inflate cost and cause erosion in India'scompetitive strength to the extent of five to 14 per cent, varying from state to state. Working capital costs for Indian exporting enterprises being nearly 15 per cent as compared to five per cent for foreign suppliers.

The differential infrastructural cost is reported to be as high as five to 10 per cent compared with other countries which also have an advantage of better duty structure. The council has pleaded for a full-fledged value added tax which rebates all taxes to exporters.

CHEMEXCIL has asked that deemed export scheme should be considered on par with physical exports. The advantage of extending this facility points out the council is that there will be higher value-addition , better utilisation of installed capacity, savings in freight costs, ensuring availability of raw material with a small waiting period and saving foreign exchange reserves.