Exporters demand stable, long-term export promotion policy
Expressing disappointment over losing of tax-refund DEPB scheme, exporters today said there is a need for more stable and long-term policy as frequent changes affect their business.
September 16, 2011 / 22:28 IST
Expressing disappointment over losing of tax-refund DEPB scheme, exporters today said there is a need for more stable and long-term policy as frequent changes affect their business.
Most of the trade export promotion councils expressed dissatisfaction over the lapsing of the 14-year-old popular Duty Entitlement Pass Book (DEPB) scheme on September 30. Engineering Export Promotion Council (EEPC) Executive Director R Maitra said the exporters are unhappy about the ending of the scheme.Echoing the view, Apparel Export Promotion Council (AEPC) said the traders want to have a stable policy. "We do not want frequent changes in policies as it impacts our profit margins. We should have a stable and long-term policy," AEPC Vice-Chairman Hari Kapoor said.However, exporter's body FIEO said the new rates would be by and large acceptable to the industry."Even if the new drawback rates are little less...Duty Drawback benefit will directly be credited to exporters' bank account, while DEPB involves paper work," FIEO President Ramu S Deora said.Deora said since reduction would be only to the extent of the stimulus component, added to the DEPB rates in October 2008, the new rates will be by and large acceptable to the industry.The government had spent Rs 8,700 crore last year on DEPB refunds. Engineering, chemical, pharma, textile and marine products have been the major beneficiaries.The government announced that shipments of 1,100 items will be entitled to lower tax refunds, under the Duty Drawback Scheme, from October 1, when curtains draw on the popular DEPB scheme. On export of these items, the tax refunds would be reduced by 1-3%. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
