The logistics sector is looking for rationalisation of taxes in the forthcoming Budget besides fiscal incentives for in-depth adoption of digitisation and skill building in the sector.

“The input credit norms for warehouse construction and operations needs to be relooked at. Currently, there is an accumulation of input tax that leads to high incidence of tax on warehousing services,” said Rajesh Jaggi, managing partner, real estate at Everstone Group.

He said since warehousing and logistics are gearing up for an in-depth adoption of digital technologies, the government should incentivise the adoption of various technologies in the sector, which would help in effective packaging and material handling, besides improving efficiency.

Mr. Jaggi said any announcement on the roll-out of the National Logistics Policy that entails an Integrated National Logistics Action Plan, would serve as an optimised master plan to define logistics’ priorities across various Ministries, including Road Transport Highways and Shipping, Railways, Civil Aviation, Department of Posts and user ministries such as Coal, Steel and Mines. This would be a positive for the sector, he said.

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