America’s prime tech foyer — Web Affiliation — has backed retaliatory tariff motion towards India, if New Delhi doesn’t roll again the ‘unilateral and discriminatory’ equalisation levy or Google Tax.
It has additionally urged the US to assist construct a world consensus round growing a contemporary, honest, and international strategy to taxing digital companies to stop such unilateral measures from international locations like India.
The Metal Producers Affiliation within the US has additionally strongly backed imposition of retaliatory tariffs towards India to handle issues associated to unfair commerce practices by Indian metal producers. It sought inclusion of over 200 further tariff traces associated to the metal sector within the retaliatory tariffs proposal.
In the meantime, jewellers and jewelry associations in India and the US have strongly opposed a US proposal to impose tariff, arguing that it will end in diversion of commerce to China moreover having a significant affect on small and medium enterprise and artisans.
In its feedback to the US Commerce Consultant (USTR) over the retaliatory tariffs proposal, the affiliation, which represents over 40 of the world’s main web corporations, together with LinkedIn, Netflix, Microsoft, and Google, expressed hope that the central authorities will roll again this discriminatory tax earlier than any escalation happens.
The Biden administration has threatened India with retaliatory tariffs of as much as 25 per cent advert valorem on a slew of Indian merchandise, together with shrimp, basmati rice and gold, amongst others, over the two per cent equalisation levy on e-commerce operators launched in April 2020. It’s relevant on non-resident digital entities with a turnover of ~2 crore. It had invited feedback on the proposal on retaliatory tariffs.
“It’s the purpose of the digital trade for India to finish its discriminatory tax earlier than any further duties would enter into drive. Thus, the proposed duties won’t need to be put into place,” the affiliation stated within the feedback to USTR ‘s proposal, the window for which closed on April 30. The general public listening to on the matter is on Might 10.
Gems and Jewelry Export Promotion Council (GJEPC) has, in its feedback, objected to the proposed tariffs on the sector arguing that it’ll trigger extreme hurt to Indian and US companies.
About 17 of the 40 product traces within the proposed tariff checklist pertain to the gems and jewelry sector.
“Our sector had earlier been considerably impacted with the abrupt withdrawal of the generalised supply of choice (GSP) advantages. We are actually deeply disturbed with the specter of additional motion towards our area of interest sector,” the affiliation stated. It urged the USTR to take away all 17 heads associated to the gems and jewelry sector from the proposed tariffs checklist. This could assist forestall diversion of commerce to different international locations ‘particularly to China.
SEEPZ Gems & Jewelry Producers’ Affiliation stated that the proposed motion will affect India’s and US economies. “The one beneficiary can be China,” it stated.
American jewelry, leather-based, attire and footwear associations have additionally opposed retaliatory tariffs towards India as it should make imports costly, impacting their companies.
The 40 sub-heads proposed for tariffs embody Rattan furnishings (a kind of furnishings) and elements, treasured stone articles, gold rope necklaces and neck chains, cultured pearls, yarn, cigarette paper, and corks and stoppers.
India’s assortment from equalisation levy almost doubled to ~2,035 crore in 2020-21 from ~1,138 crore within the earlier 12 months.