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Time of India
26-07-2025
- Business
- Time of India
India-UK trade deal: CETA opens duty-free access for Indian seafood; exporters eye 70% growth boost
Representative image The India-UK Comprehensive Economic and Trade Agreement (CETA) is likely to provide a major boost to India's seafood and export sectors. The landmark pact was signed on Thursday, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer and was formalised by commerce minister Piyush Goyal and UK secretary of state for business and trade Jonathan Reynolds. As per news agency ANI, the agreement is expected to significantly benefit India's marine exports by scrapping UK import tariffs that previously ranged from 0 to 21.5 per cent. These included duties on shrimp, squid, frozen pomfret, lobsters, and other seafood items under HS Codes 03, 05, 15, 23, 95, and 1603 to 1605. With CETA now in effect, all marine products in tariff category 'A' receive full duty exemption. However, certain prepared seafood items under HS 1601 remain excluded from benefits. India exported $104 million worth of seafood to the UK in 2024–25, with frozen shrimp accounting for $80 million alone. Despite this, India's share in Britain's $5.4 billion seafood market stands at just 2.25 per cent. Industry estimates now predict a 70 per cent increase in exports to the UK, supported by improved cost competitiveness, according to ANI. The fisheries sector supports nearly 28 million livelihoods in India and accounts for 8 per cent of global fish production. Over the past decade, seafood export volume jumped 60 per cent and value grew 88 per cent. According to ANI, the number of destinations expanded from 100 to 130 countries, and value-added product exports tripled to Rs 7,666 crore, reflecting a shift towards premium markets. CETA helps India level the field with countries like Vietnam and Singapore, which already enjoy UK duty benefits through their respective FTAs. This removes a key disadvantage previously faced by Indian exporters, especially for high-value products. States like Kerala, Tamil Nadu, Gujarat, Maharashtra, and Andhra Pradesh are well-positioned to lead this export surge, especially if they continue to align with the UK's sanitary and phytosanitary standards. Experts say the deal's scope goes beyond seafood. The landmark agreement provides zero-duty access to 99 per cent of tariff lines, with a key focus on labour-intensive areas other than seafood like textiles, leather, and gems and jewellery. It is expected to drive up exports in consumer goods, apparel, cosmetics, auto parts, and jewellery. As per news agency PTI, EY India's Agneshwar Sen believes that Indian MSMEs and job creation in labour-heavy sectors would benefit, while UK firms gain deeper access to India's growing market. The agreement also marks progress in services trade. ICRA chief economist Aditi Nayar was quoted by PTI as saying that India stands to gain from UK concessions in IT, financial services, education, and professional mobility. An added social security pact allows Indian professionals to be exempt from UK contributions for three years, making overseas employment more financially viable. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Sun
30-06-2025
- Business
- The Sun
Taxing day for businesses
TODAY is set to be a crucial date in the Malaysian tax scene. To facilitate compliance, here is a recap of the changes that take will take effect. • Businesses with annual turnover of RM25 million to RM100 million are required to be in full compliance with e-invoicing requirements. Until June 30, 2025, businesses of the said size were allowed flexibilities to issue consolidated e-invoice on sales transactions as well as consolidated self-billed e-invoice on importation of goods and services. These flexibilities would cease to exist for transactions from July 1, 2025 onwards. • Businesses with annual turnover of RM5 million to RM25 million are required to implement e-invoice, but flexibilities are available for the first 6 months, i.e. until Dec 31, 2025. • Statutory bodies, statutory authorities and local authorities are required to issue e-invoice from July 1, 2025. Even after this date, there is an exception that expressly preclude requirement to issue e-Invoice in respect of collection of payment, fee, charge, statutory levy, summon, compound and penalty by the said bodies/authorities carrying out functions assigned to it under any written law. • Widening of scope of service tax to include education, higher education (for non-citizen), healthcare (for non-citizen), construction works, financial services, beauty & personal care services, as well as rental and leasing of movable and immovable properties. Service providers who are presently registered for service tax would charge 6% or 8% on these transactions from July 1, 2025 onwards. • Widening of scope of sales tax to include goods from over 3,000 HS Codes. This affects various products that belongs to HS Code chapters of plastics, rubber, wood, iron and steel, copper, nickel, aluminium, machinery, mechanical appliances etc., which were previously under the sales tax exemption order. Manufacturers who are presently sales tax registered are required to impose sales tax on these newly taxable goods starting from 1st July 2025. • Importation of various taxable goods are subject to sales tax from July 1, 2025. The newly taxable goods include the examples in the preceding point as well as fresh food items such fruits and seafoods. • Malaysian businesses that pay to foreign vendors in respect of the newly taxable services are required to self-account for a 6% or 8% service tax under the reverse charge mechanism. This requirements is independent of withholding tax requirements and applies from July 1, 2025 regardless of whether the Malaysian customer is a service tax registered person or not. Next 'big date' is Sept 1, 2025 • For service providers who are presently not service tax registered but provide services which are newly gazetted as a taxable service, an application for service tax registration must be submitted in August 2025 if the value of taxable service exceeds the registration threshold. Consequentially, the service provider shall impose service tax at a rate of either 6% or 8% on the value of taxable services effective from Sept 1, 2025. • For manufacturers who are presently not sales tax registered but sell goods which are no longer listed in the Ministerial Order on goods exempted from sales tax, an application for sales tax registration must be submitted in August 2025 if the value of taxable goods exceeds the registration threshold of RM500,000. Consequentially, the manufacturer shall impose sales tax at a rate of either 5% or 10% on the value of taxable goods effective from 1st September 2025. To-do before the year end Here are opportunities to bridge compliance gaps without penalty before we wrap up this year: 1. Employment agreements entered into during calendar year 2025 are to be stamped by Dec 31, 2025 without any late stamping penalty. 2. A comprehensive compliance review on agreements or contracts (inclusive of risk assessment) in view of the implementation of self-assessment for Stamp Duty effective January 1, 2026. There may be merits to close any compliance gap or risk areas by Dec 31, 2025 before self-assessment provisions in the Stamp Act takes legal effect. 3. In relation to SST expansion, businesses are granted grace period up to Dec 31, 2025 to make good any compliance gap without penalty. The tax, however, must be paid and it would be a cost to the vendor if the same cannot be recovered from the customer. New year, new beginnings Here are key tax changes that effect from Jan 1, 2026: 1. Consolidated e-invoice is not permitted for any single transaction with a value exceeding RM10,000. This means, if an individual buys, say, a luxury watch costing more than RM10,000, he or she would be required to provide their NRIC number or TIN to the vendor as a mandatory to complete the transaction. 2. Businesses with annual turnover of more than RM5 million to RM25 million are required to be in full compliance with e-invoicing requirements (flexibility ends on Dec 31, 2025). 3. Businesses with annual turnover of RM1 million to RM5 million are required to implement e-invoice, but flexibilities are available for the first 6 months – i.e. until June 1, 2026. 4. The first phase of implementation of self-assessment system for stamp duty, thus requiring businesses to independently evaluate the stamp duty payable on their agreements / instruments executed from this date onwards. Of course, the above is only based on changes legislation as of now. There could be more tax measures that take effect from 1st January 2026 as part of the 2026 Budget which is planned to be tabled in the parliament during the month October 2025. Concluding thoughts Gone the days businesses refer to a simple tax calendar each year filled with tax filing deadlines. The multiple tax measures rolled out recently to fine-tune the nation's tax system means that businesses must be more diligent in managing the tax affairs and meeting the due dates. While ensuring compliance is important, businesses must also perform holistic tax impact assessment with an aspiration to maintain competitiveness by optimising exemptions and embracing technology. Businesses should recognise the highly technical nature of some of the recent tax measures and seek professional input from professionals who are duly licensed, qualified and experienced to avoid unintended non-compliance. This article is contributed by Vivekanandan Vasudevan (pic) is Corporate & International Tax Manager at TRATAX Sdn Bhd, consulting firm specialised in tax, transfer pricing & SST.
Business Recorder
26-05-2025
- Business
- Business Recorder
Empowering women entrepreneurs in Pakistan: TDAP organises workshop on market analysis tools in Sialkot
SIALKOT: Trade Development Authority of Pakistan (TDAP), Women Entrepreneur Division, in collaboration with Sialkot Women Chamber of Commerce & Industry, successfully organized a hands-on training workshop on 'Market Analysis Tools – Trade Map' on 22nd May 2025 in Sialkot. This initiative aimed to strengthen the export potential of women entrepreneurs by equipping them with practical skills to analyze international markets using the International Trade Centre's (ITC) Trade Map, which is a widely used resource for market intelligence, competitor benchmarking, and export planning. The session was conducted by Mahina Ghalib, Deputy Director, TDAP, and featured an in-depth exploration of HS Codes and Trade Map functionalities, followed by practical training to help participants identify export destinations, track global trade flows, and assess market demand. Participants were also provided with manuals and resources to deepen their understanding of the platform beyond the session. Around 30 entrepreneurs took part in the training, engaging actively in discussions and exercises. The interactive nature of the workshop encouraged questions and personalized feedback, ensuring participants walked away with relevant and applicable knowledge. This workshop is part of TDAP's ongoing, targeted capacity-building series for women entrepreneurs. Following the successful trainings in Faisalabad and Sialkot, the next session in this series is scheduled to be held in Lahore. Copyright Business Recorder, 2025
Business Recorder
26-05-2025
- Business
- Business Recorder
Empowering women entrepreneurs: TDAP organises workshop on market analysis tools in Sialkot
SIALKOT: Trade Development Authority of Pakistan (TDAP), Women Entrepreneur Division, in collaboration with Sialkot Women Chamber of Commerce & Industry, successfully organized a hands-on training workshop on 'Market Analysis Tools – Trade Map' on 22nd May 2025 in Sialkot. This initiative aimed to strengthen the export potential of women entrepreneurs by equipping them with practical skills to analyze international markets using the International Trade Centre's (ITC) Trade Map, which is a widely used resource for market intelligence, competitor benchmarking, and export planning. The session was conducted by Mahina Ghalib, Deputy Director, TDAP, and featured an in-depth exploration of HS Codes and Trade Map functionalities, followed by practical training to help participants identify export destinations, track global trade flows, and assess market demand. Participants were also provided with manuals and resources to deepen their understanding of the platform beyond the session. Around 30 entrepreneurs took part in the training, engaging actively in discussions and exercises. The interactive nature of the workshop encouraged questions and personalized feedback, ensuring participants walked away with relevant and applicable knowledge. This workshop is part of TDAP's ongoing, targeted capacity-building series for women entrepreneurs. Following the successful trainings in Faisalabad and Sialkot, the next session in this series is scheduled to be held in Lahore. Copyright Business Recorder, 2025
Time of India
28-04-2025
- Business
- Time of India
Chemical chaos: Trump's tariffs push small Indian chemical firms to the brink
The reciprocal tariffs imposed by US President Donald Trump on chemical exports have created new challenges for India's chemical industry. Notably, India is the world's sixth-largest chemical producer and the third-largest in Asia. The sector also contributes roughly 7% to the country's gross domestic product (GDP). #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" It is worth mentioning that the US President, on April 9, reduced a proposed 26% reciprocal tariff to 10%, just days after announcing the higher rate on April 2. What impact will Trump's latest diktat have on the country's chemical sector? According to Satish Wagh, Vice President of industry body Chemexcil , tariffs have made operations tougher for chemical firms. However, he points out that the segment's competitors—China (up to 245% levy), Vietnam (46%), and Bangladesh (37%)—face even higher tariffs, making Indian chemical products relatively more attractive. 'For now, Indian MSMEs will remain price-competitive, especially in segments where India has strong cost advantages, e.g., dyes, agrochemicals, organic chemicals , and specialty chemicals. Perhaps chemical exporters need to absorb part of the tariff cost to retain US customers, which could reduce profit margins,' says Wagh. 'The impact will vary by product category. High-value, hard-to-substitute chemicals such as dyes, agrochemicals, organic chemicals, and specialty chemicals will see limited effect— while low-margin, bulk chemicals like inorganic chemicals may be more affected by the 10% cost hike,' he adds. Live Events Looking ahead, he warns that pressure on profit margins could lead to an export slowdown, disrupting raw material procurement and production cycles. There is also the threat of dumping by competitor countries, particularly China, which may reroute exports via India to exploit regulatory loopholes. Wagh explains, 'Due to higher tariffs (245%), China may dump certain chemicals in India, including inorganic chemicals, dyes, and agrochemicals. Indian importers will see this as an opportunity and will import these chemicals from China. This may impact domestic manufacturers. Also, due to global tariff changes, some contracts or orders that are in the pipeline or under negotiation may be delayed or renegotiated. Buyers might evaluate alternate suppliers, especially from tariff-exempt competing countries like Japan, South Korea, and Saudi Arabia.' To overcome the aforementioned challenges, Wagh suggests a mix of short-term and long-term strategies. In the near term, he stresses the importance of harmonising HS Codes between India and the US to avoid tariff mismatches and reduce trade barriers. He also recommends prioritising the negotiation of a comprehensive Bilateral Trade Agreement (BTA) with the US. Additionally, Wagh advocates for imposing duties on chemical imports, particularly from China, to prevent India from becoming a dumping ground. In the long term, he believes that Indian chemical companies should actively explore new markets across Europe, the Middle East, Africa, and Southeast Asia to reduce their dependence on the US. He also believes that strengthening domestic production capabilities and reducing dependence on imported raw materials is critical. Wagh suggests that collaboration with US partners to establish manufacturing bases within the US may serve as an effective strategy to circumvent tariffs. Lastly, investing in specialty and high-value chemicals, he argues, will help boost the global competitiveness of Indian exports. MSMEs hit hard by tariffs and data gaps The chemicals industry in India is highly diversified, covering over 80,000 commercial products, and is predominantly characterised by small firms, employing over 2 million people, according to government data. Notably, Chemexcil states that Indian MSMEs contribute almost 65% to overall Indian chemical exports. Rajat Mehra, Co-convenor of the CII UP MSME Panel and Director at Rajat Chemicals Industry, says Trump has, in one swoop, disrupted the international trade playing field, making it extremely uneven, particularly for thousands of small firms (MSMEs) engaged in all types of chemical and specialty chemical manufacturing. He adds that this highly fragmented international trading landscape has forced them to reassess not only their own strengths but also the strengths and weaknesses of competitors located in different tariff zones. Mehra emphasises that while the Indian government has limited options; it must negotiate a trade deal with the US that ensures India remains in the 10% base tariff zone. 'Given the extreme disruption caused by the new reciprocal tariffs and the resulting multiple tariff zones, access to import data from American ports has become a critical requirement for Indian exporters. While this data is available, it comes at an exorbitant cost, affordable only for large companies. Most MSMEs cannot afford it and are left without access,' he adds. Further, Mehra opines that considering the gravity of the new international trade landscape, the government must acquire import-export data from US ports for the past 2-3 years and provide it free of cost to MSMEs. This will help them analyse potential opportunities. 'The government must seriously revisit GST and income tax procedures, simplifying them to promote ease of doing business, allowing MSMEs to focus more on growth and less on compliance.' Way forward Amid increasing tariff pressures, the Indian government is reportedly examining all available options. 'We are still studying. We are in touch with the industry and trying to assess how it will affect our sector,' said Chemicals and Petrochemicals Secretary Nivedita Shukla Verma during a press briefing last week. Another critical question is what roadmap India should follow to recalibrate its trade strategy during this 90-day pause. Faisal Ahmed, professor of international business and geopolitics at the FORE School of Management in New Delhi, is of the view that while the current 90-day break in tariffs might be prolonged, the US and China will likely return to the negotiating table—possibly within this month—as neither can sustain a lose-lose strategy for long. Ahmed suggests India should adopt a three-pronged approach to capitalise on the current situation, particularly if the pause and the US-China stand-off continue. First, it should push for an early negotiation of a free trade agreement with the US while also revisiting the possibility of joining the Regional Comprehensive Economic Partnership (RCEP), of which India had been a founding negotiating member. Second, India needs to roll out a 100-day action plan aimed at boosting domestic manufacturing, backed by targeted incentives under initiatives like Make in India and the Production-Linked Incentive (PLI) scheme. Third, Ahmed underscores the urgency of addressing supply-side constraints by strengthening domestic production capacity, streamlining trade facilitation, diversifying market access, and expanding port infrastructure—all as part of an integrated strategy.
