India Recommends That WTO Establish The Basis For Import Penalty Tax.

The India government put forward a proposal to the WTO that a mandatory benchmark should be set up when exportation tax is imposed on the exporters of goods that are heavily subsidized by exporters.

Therefore, these anti-dumping duties are not ordinary taxes. The government of India provides preferential measures for textile and clothing and leather exporters to encourage them to cope with the economic crisis. However, the India government is worried that it may be punished by importing countries.

This is the main reason for India to set the standard benchmark, and the standard benchmark will not be subject to excessive and arbitrary penalty tax.

Mr Rahul Mehta, President of India Garment Manufacturers Association, said: "I support the government's view that the concept of ambiguity should be abolished."

"But my experience is that the government is most concerned about the export promotion measures announced by WTO," he said.

As far as the WTO is concerned, there is no harm in making an objective benchmark by the government.