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September 25, 2007 18:12 IST
The commerce ministry is understood to be working on a formula to compensate exporters for local and municipal taxes in the wake of an appreciating rupee impacting their margins.
The ministry has already compiled data on different taxes at the state and local body level and sought views of the various export promotion councils, an official of an apex export association said.
While the formulation is being worked out by the commerce ministry, the industry and export community is also in touch with senior functionaries in the finance ministry.
According to sources, Chairman of Chemicals and Allied Products Export Promotion Council S K Ghosh has met advisor to Finance Minister, Parthasarthi Shome.
Various exporters' bodies have started lobbying both with the commerce and finance ministries in the face of many proposals getting stuck at the North Block even as they are mooted by the commerce ministry.
Nath, who is on a tour to the US, had said on Monday, the government would not intervene in the rupee movement.
"China calibrates exchange rates, but we've left it to be market determined. I really don't think government should be intervening... we did away with (this practice) as part of reforms.
"I know the industry will be pained, but it needs to look for increasing efficiency and cost effectiveness," he said.
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