Jaitley to hold pre-budget meet with biz chambers

New Delhi: Business chambers will meet Finance Minister Arun Jaitley on Saturday for pre-Budget consultations where they are likely to press for early implementation of GST as well as certain steps to boost exports and the economy.

While industry bodies including CII and Ficci will ask for steps to ease cash crunch hurting the economy following the government's demonetisation of Rs 500/1000 notes, exports body FIEO will ask for addressing issues related to inverted duty structure and implementation of Goods and Services Tax (GST).

An inverted duty structure impacts domestic industry as manufacturers have to pay a higher price for raw materials in terms of duty, while the finished product lands at lower duty and costs lesser.

The inverted duty structure is making Indian manufactured goods uncompetitive against finished product imports in the domestic market, FIEO Director General Ajay Sahai said.

He said that issues related to limitations of cash withdrawal due to demonetisation will be raised. The Union Budget for 2017-18 is expected to be presented on February 1.