Exports exempted from Service Tax, thrust to Agri-exports

New Delhi, Apr 19 (UNI) The new Foreign Trade Policy (FTP) unveiled by the government today extends the time period of the DEPB scheme by another year, announces a new scheme for exports of high tech products, exempts exports from service tax and gives a renewed thrust to incentevising agri-exports and agro-processing infrastructure.

The policy launched by Commerce and Industry Minister Kamal Nath has steps to ease export obligations under the EPCG scheme and enlarges the ambit of exports under the Videsh Krishi and Gram Udyog Yojana by bringing under its fold new agri-products.

The export obligation period under the EPCG scheme has been increased from eight to 12 years.

The annual supplement to the policy sets an export target of 160 billion dollars for 2007-08 and envisages that these would go upto 200 billion dollars by 2008-09.

Mr Nath also announced measures to streamline and simplify the export procedures to bring down the transaction costs.

The Focus Products and Focus Market Schemes have also been enlarged.

With a view to generating large-scale employment, the thrust on handloom, handicrafts, and gems and jewellery sectors is to continue. In this regard, the Minister announced exemption from duty machinery and equipments needed for affluent treatment plants required by the handloom and the handicrafts industries.

This has been done to enable these sectors to meet environmental and other standards abroad.

MORE UNI