ITTA seeks excise, VAT exemption to import vehicles

With the government intensifying preparations for the Commonwealth Games, tourist transporters have asked the Finance and Commerce ministries to provide them a one-time exemption from excise duty and VAT, allowing duty-free import of vehicles and interest subsidies. This, they argue is imperative, to ensure their logistical preparedness as they would need to invest around Rs 1,000 crore for the same.

Indian Tourist Transporters Association ITTA president Sarab Jit Singh said, 8220;We have written to the commerce and finance ministries to provide us a one-time exemption from excise duty and VAT under the Export Processing Guarantee Scheme EPCG on the purchase of nearly 5,000 vehicles.8221;

Singh said tourism organizations were allowed to import vehicles under the EPCG scheme but only a handful have been able to benefit from it. He pointed out that the importers had to fulfill export obligations, like earning foreign exchange over a period of eight years. But they do not interact directly with the tourists and hence do not earn any foreign exchange.