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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