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Export target fixed at $200 bn; sops for cement, steel removed

Export target fixed at $200 bn; sops for cement, steel removed
PTI
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First Published: Fri, Apr 11 2008. 02 04 PM IST
Updated: Fri, Apr 11 2008. 02 04 PM IST
New Delhi: The government on 11 April set an export target of $200 billion for the 2008-09, up from $160 billion last year, even as it withdraws incentives for export of cement and steel to contain inflation.
In order to help the exporters hit by appreciation of rupee and slowdown of global economy, the government has reduced customs duty on import of capital goods from 5% to 3% under the Export Promotion Capital Goods (EPCG) scheme.
Unveiling the annual supplement to the Foreign Trade Policy (FTP) here, Commerce and Industry Minister Kamal Nath said interest subvention to help rupee-hit exporters will be extended by one more year, while the average export obligation under the EPCG scheme will reduced.
The export target for the current financial year has been pegged at $200 billion, he said adding, the total exports during 2007-08 are likely to exceed $155 billion, lower than target of $160 billion.
As part of the fiscal exercise to check inflation, which touched 7.41%, the Government has withdrawn incentives for export of cement, primary steel products.
The other export promotion measures announced by Nath in the annual supplement to the FTP include extension of income tax exemption to the 100 per cent Export Oriented Units (EOUs) till 2010. The tax incentives were expiring on 31 March, 2009.
Taking note of the worldwide growth in the telecommunications sector, the Commerce Ministry has also decided to set up a separate Export Promotion Council for the telecom sector to facilitate exports.
Announcing the policy, Nath said joint task force comprising representatives of the Central and state governments and industry will be set up to draw a strategy for developing world class infrastructure for exports involving an investment of $800 billion.
The specific export promotion measures announced by the Commerce Ministry include additional duty-free credit of 2.5% under the Vishesh Krishi Gram Udyog Yojana, additional credit of 5% for toys and sports goods industries under Focus Products Scheme and inclusion of IT and ITeS under the Industrial Park Scheme.
He further said that separate funds for market promotion activities would also be given for promoting the export of sports goods.
To promote exports of specific fruits, vegetables and flowers, he said, additional duty free credit scrip of 2.5% would be provided over existing limit announced earlier.
He further said that exporters would get an interest of 6% per annum on delayed refunds of excise duty and Central Sales Tax (CST). “This interest on delayed refund will be paid on all such claims that have become due on or after 1 April 2007”, he added.
The minister assured the exporters that the Centre would look into the possibility of formulating a scheme to compensate the exporters on taxes levied by the states. “The government is looking into formulation of a scheme for rebating these taxes (levied by states), with urgency”, he added.
To encourage gems and jewellery exports, Nath said, the time period for re-import of branded jewellery has been extended from six months to one year, while the value of jewellery parcels raised from $50,000 to $75,000.
Announcing the policy, Nath said a joint task force consisting of representatives of the Central and state governments and industry will be set up to draw a strategy for developing world class infrastructure for exports at an investment of $800 billion.
The specific export promotion measures announced by the Commerce Ministry include additional duty-free credit of 2.5% under the Vishesh Krishi Gram Udyog Yojana, additional credit of 5% for toys and sports goods industries under Focus Products Scheme and inclusion of IT and ITeS under the Industrial Park Scheme.
He further said that separate funds for market promotion activities would also be given for promoting the export of sports goods.
To promote exports of specific fruits, vegetables and flowers, he said, additional duty free credit scrip of 2.5% would be provided over existing limit announced earlier.
He further said that exporters would get an interest of 6% a year on delayed refunds of excise duty and Central Sales Tax (CST). “This interest on delayed refund will be paid on all such claims that have become due on or after 1 April , 2007”, he added.
The Minister assured exporters the Centre would explore the possibility of formulating a scheme to compensate them on taxes levied by the states. “The government is looking into formulation of a scheme for rebating these taxes (levied by states), with urgency”, he added.
To encourage gems and jewellery exports, Nath said, the time period for re-import of branded jewellery has been extended from six months to a year, while the value of jewellery parcels raised from $50,000 to $75,000.
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First Published: Fri, Apr 11 2008. 02 04 PM IST