Distrust beteen tax officials and customs has made India one of the worst places to do business: ICA

Mobile industry body Indian Cellular Association (ICA) today criticised the business climate in India saying cumbersome processes have emerged out of distrust between tax officials and customs authorities.

“Ease of doing business…there are very few countries we can compete with, obviously from the bottom. Probably, this is the worst country to do business in. That is a very frank statement I want to make,” ICA National President Pankaj Mohindroo said at an event organised by IAMAI.

He said that IGCR (Import of goods at concessional rate of duty for manufacture of excisable goods) processes are very cumbersome in the country.

“There is no trust between customs authorities and taxation authorities. Most ridiculous thing that I have ever heard is that there is target given for revenue collection,” Mohindroo said.

He said that lack of ease of doing business is very upsetting to the industry.

Industry players raised concerns over huge capital getting blocked in bank guarantees given as assurance to customs that the items imported by them on concessional duty rates will not be retailed in the market and will be used solely for making mobile phones. As per data available in April, it is estimated that bank guarantees to the tune of Rs 29,000 …read more