First Ever Pre-Budget Joint Interaction of Exporters and Commerce Minister with Finance Minister
The first ever pre-Budget and pre-Foreign Trade Policy joint interactive meeting of exporters convened by the Commerce and Industry Minister KamalNath with the Union Finance Minister, was held yesterday morning. The exporters urged the government to continue Duty Entitlement Passbook Scheme (DEPB) and the Textile Upgradation Fund Scheme (TUFS) and to remove or rationalise levies that erode the global competitiveness of Indian exports.
Other suggestions made included
1. zero duty on imports for export production under the Export Promotion Capital Goods Scheme (EPCG) to provide a level playing field and promote expansion and modernisation;
2. widening of the Focus Market and Focus Market Scheme.
3. a firm date for EDI (electronic data interchange) connectivity by Customs as it would greatly reduce transaction cost of exporters.
4. exemption from service tax and the Fringe Benefit Tax, which put a heavy burden on exporters for activities which were essential for export promotion.
5. removal of the sunset clause under Section 10 b which provides income tax exemption on EOU exports only till 2009.
6. issue of guidelines by Revenue so that SEZ Rules could be implemented by their field formations.
7. relaxation and extension of export obligation under the EPCG Scheme for fishing and marine industry affected by natural calamities such as Tsunami, besides factoring in of fuel costs in DEPB as with other export promotion schemes.
8. Direct import of bullion in a phased manner by the Gem and Jewellery Export Promotion Council as the present system of allowing imports only by nominated agencies for supply to exporters added to transaction costs and procedural hassles.
9. exemption from excise and additional customs duty on machinery, spare parts etc used in leather and leather products, including footwear