Our Bureau

Mumbai , Oct. 20

THE All India Liquid Bulk Importers and Exporters' Association (AILBIEA) has sought rationalisation of trade policies and elimination of multiple level taxes levied on bulk cargoes at different levels. It has also demanded drastic improvement in infrastructure facilities in Mumbai.

The association President, Mr Jayant Lapsia, said, "Imports are rising in India but Mumbai and Jawaharlal Nehru ports have not seen commensurate rise in volumes. Trade is shifting to Kandla, Kakinada and other South Indian ports."

"Octroi duty is levied at a rate of five to seven per cent, which does not make sense when the customs duty has been reduced to 10-15 per cent," he said. "Basically customs duty and Octroi are similar type of taxes."

"Transaction cost arising out of high cost of money, labour and infrastructure is huge. Newer units are therefore migrating out of Mumbai to take advantage of tax concessions, though they keep their offices here," said Mr G. Chandrasekhar, advisor to AILBIEA.

No other State in India imposes cess on the transaction of edible oil, a manufactured item, and stamp duty on importers, Mr Lapsia said.

Mr Chandrasekhar said the Finance Minister, Mr P. Chidambaram, had written to the State (Maharashtra) Government to review stamp duty but nothing has happened so far.

Mr Lapsia said there is an urgent need to have a regulatory body or some sort of regulation for the shipping agents, who charge arbitrarily on some pretext or other.

"They perhaps earn more than the shipping companies. They bring in new charges like washing charge, document charges and other frivolous charges unheard of before.

Latest in their list of charges is amendment charge, though they seldom do these. The amendments, if needed, are done by the customs officials only," he said.

"If nothing concrete comes out of our efforts with the State Government, we may eventually be forced to move to the court," Mr Lapsia said.

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