Financial Daily from THE HINDU group of publications
Wednesday, Feb 01, 2006
Financial Daily from THE HINDU group of publications Wednesday, Feb 01, 2006 |
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Logistics
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Taxation Express council appeals to Govt to revoke FBT Our Bureau
Hyderabad , Jan. 31 THE Express Industry Council of India (EICI), an association of express trade companies, has appealed to the Government to revoke the fringe benefit tax, pointing out that activities essential to the express business were being taxed. "We offer door-to-door pick-up and delivery service of shipments. This is the core of our business. Including this in the FBT purview is not justified," said Mr R.K. Saboo, Chairman of EICI. In an appeal to the Finance Ministry, he said the purview of FBT was "unduly large with the existence of several categories of business expenditures that didn't accrue any benefit to the employees." "Yet another area of business operation being taxed is expenditure on communications. Communication is very crucial in serving our customers ... Calls made to the customers on matters like octroi payments and customs duty," he asserted. Of the Rs 3,000-crore express market, domestic market constitutes 65 per cent of the total market at Rs 1,950 crore. "The industry is growing at about 25 per cent annually and is expected to touch Rs 4,700 crore by 2008," Mr Saboo said. "Taxes such as FBT will make it difficult for the industry to sustain the growth rate. Even some loss-making express companies have been subjected to FBT," he said.
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