MUMBAI: DHL Express, part of the $61-billion Deutsche Post DHL group, has tackled the initial, difficult part of goods and services tax (GST) implementation in India, its Asia Pacific CEO said.
In an interview with ET, Ken Lee also said the company sees potential and a market for its electric vehicles ‘Street-Scooters’ to transport courier in Indian cities. “There has been a lot of debate on GST and demonetisation. These are big steps taken by the government. Modinomics is definitely at play. These steps show the determination of government to take the logistics and various other sectors to the next level,” said Lee.
The implementation of GST—India’s biggest tax overhaul since independence that replaces eight indirect taxes with one—has not been without its severe glitches. The logistics industry has been crying hoarse about several issues including the complexities in compliance, registration of vehicles and paperwork.
The portal backing the e-way bill, a complex digital tracker of cargo road transport, crashed on the first day of its implementation on March 1. It will likely be implemented now in April.
Lee, however, said DHL Express is bullish about India and focussed on the market.
DHL Express, which provides international courier, parcel and express mail services, recently opened its 47th Indian service centre in Goa. Lee said four or five more will be opened by the company this year.
DPDHL has committed to spending ¤250 million in India till 2020, of which ¤45 million will be spent by DHL Express.
Lee said India has a large, untapped potential for cross-border ecommerce and said it would be a big opportunity for DHL, the world’s biggest logistics company by revenue.
Lee said he sees an opportunity for StreetScooters in India when there is a conducive regulatory framework and infrastructure for electric vehicles in the country. StreetScooter, headquartered in Aachen, Germany, was bought by DPDHL in 2014.
Source- Economic Times.