FICCI seeks restoration of target plus benefits

New Delhi, June 21: Federation of Indian Chambers of Commerce and Industry (FICCI) today asked for the restoration of duty credit benefits for exporters under the target plus scheme.

Exporters have taken the benefits under the scheme into account while taking pricing decisions and exports for the year 2005-06 were done considering the benefits accruing from it. So any reduction in benefits under the said programme will result in losses for the exporters, a FICCI statement said here.

Pointing out that the reduced rate is applicable with retrospective effect from April 1, 2005, the chamber said this will severely impact the exporters as some of them are holding duty entitlement scrips to th tune of Rs 100 crore.

The Directorate General of Foreign Trade (DGFT) vide its notification has amended the target plus scheme after which, exporters who were entitled to 15 per cent and 10 per cent duty credit benefit as a percentage of incremental value of exports, will now be entitled to only 5 per cent benefits.

UNI