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Rs 800 crore released as part of relief for exporters

NEW DELHI JANUARY 5, 2009
In a relief to exporters facing a demand slowdown in major global markets, the Centre on Monday released Rs 800 crore towards payment of pending claims of Terminal Excise Duty, Duty Drawback and Central Sales Tax.

Of the total amount, Rs. 600 crore was released to regional authorities of directorate general of foreign trade (DGFT) for payment of pending claims of Terminal Excise Duty and Duty Drawback under deemed export scheme, an official statement said. The government has also released Rs. 200 crore to the Development Commissioners of Special Economic Zones for payment towards pending claims of Central Sales Tax in respect of supplies made to 100% Export Oriented Units (EOUs), the statement added.

Meanwhile, the DGFT kickstarted the stimulus package for exporters into operation by increasing the duty refund rates and restoring them to the level before November 5, 2008, when the reimbursement was cut.

The DGFT also notified the extension of the popular Duty Entitlement Pass Book (DEPB) scheme meant for refund of taxes to exporters till December, 2009. This was on the lines of the government's second stimulus package unveiled on January 2. In November, following the sudden appreciation of the rupee and higher realisations, the government had decreased the tax refund rates for exporters.

Source: The Financial Express

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