Commerce and Industry Minister Anand Sharma will be meeting Finance Minister Pranab Mukherjee to make a case for the extension of one of the most popular incentives to exporters, the Duty Entitlement Passbook Scheme (DEPB), which is slated for expiry on June 30. DEPB is a duty reimbursement scheme, launched 14 years earlier.
The export package includes cheaper loans to labour-intensive sectors, faster reimbursements of taxes paid on exports as well as additional guarantee for export related insurance. However, some of the key demands like the enhanced Duty Drawback and Duty Entitlement Passbook Scheme rates were not conceded by the government.
Quick estimates available with the commerce ministry show that exports dipped 12 per cent in November, almost the same as October.
One of the most favoured duty reimbursement schemes among exporters - the Duty Entitlement Passbook (DEPB) scheme - is likely to be scrapped, as the government gears up to introduce the Goods and Services Tax (GST) from April 1.
Enthused by over 20 per cent export growth this year, the Exim policy to be unveiled on March 31 will contain far reaching measures to encourage exports of textiles and gems and jwellery
After getting periodic extensions, the 14-year-old tax-refund scheme is finally coming to an end in June.
The finance ministry had strongly opposed the hike announced by the commerce ministry.
With India's exports all set to touch $80 billion in 2004-05, the new Foreign Trade Policy to be unveiled on Friday will have a slew of measures to boost farm exports apart from traditional sectors like textiles, gems and jewellery.
References to the repealed laws for service tax, purchase tax, etc, continue in the SEZ laws.