New Delhi, Dec 19 (UNI) Stating that exports are under some stress due to the rapid appreciation of the rupee against a weak dollar, Union Finance Minister P Chidambaram today called upon state governments to rebate or refund all taxes on exports to drive economic growth of the country.
"The Central Government rebates or refunds every tax that is payable or paid and is attributable to goods and services that are exported," he told the National Development Council(NDC) at its 54th meeting here and urged the state governments to do the same to enable exporters stay competitive.
State governments should abide by the universally accepted principle that taxes shall not be exported. Taxes such as Vat, octroi and electricity duty presently borne by exporters should be rebated or refunded, he added.
He said any state which relieves exporters of tax burdens stands to gain by attracting more export-oriented industries.
Expressing concern over infrastructure, the Finance Minister said unless targets set for each sector such as roads, ports, railway lines and above all power are met in the 11th Plan, the country can not achieve the growth target of 10 per cent in the last year of the plan.
He said the nation did not do well in the power sector in the 8th, 9th and 10th plan,pointing out that only 21,080 megawatt was generated during the 10th plan as against the target of 41,110 MW.
China, on the other hand, added one lakh MW capacity in the last year alone, he added.
Underlining determination of the Central government to achieve the target of 78,577 MW in the 11th plan, Mr Chidambaram urged state government to ensure that land, water and road connectivity for power projects are made available on time. They must also ensure power grid connectivity so that electricity can be carried to where the need is greatest.