The government says that DEPB recipients should now avail of duty drawback and other similar tax remission schemes.
Meanwhile, the CII in a statement warned that withdrawal of the scheme would result in a serious blow to the exports growth momentum achieved in the last few quarters.
Dr Rahul Khullar commerce secretary had recently remarked that there was merit in the Finance Ministry's contention that when exporters were doing so well where is the need to continue sustaining them by throwing money at them? He said exporters could always enjoy tax rebates through other windows like the duty drawback scheme.
A moot point, however, is that rates of refund in the duty drawback scheme are much lower than those available under the DEPB scheme.
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