NEW DELHI: The government is likely to extend the Duty Entitlement Passbook (DEPB) scheme for exporters on the basis of Anwarul Hoda Committee’s recommendations that has favoured its continuation for another three years.
The committee, which was set up to suggest an alternative to DEPB that would cover all the major taxes that exporters were subjected to, could not come up with a new scheme due to differences with Finance Ministry, sources said.
“Finance Ministry was not in favour of a new scheme as it would have had to refund more taxes to exporters,” they said.
At present, under DEPB only customs and central excise duties paid on inputs by exporters are refunded.
As the committee could not find a replacement to DEPB, it suggested its continuance for another three years. The scheme will expire by end of this fiscal.
“DEPB is likely to be extended for a year to begin with,” Commerce Secretary G K Pillai said on the sidelines of a seminar by Confederation of Indian Textile Industry (CITI).
He said the efforts to find a replacement to the DEPB would continue as the present scheme only covers excise and customs and not other taxes that exporters have to pay.
The committee, set up eight months ago, presented its report to Prime Minister’s Office last month.