Exports exempted from Service Tax

New Delhi, Apr 19: The Foreign Trade Policy (FTP) unveiled by the government today extends the time period of the DEPB scheme by another year, a new scheme for exports of high tech products, exemption of exports from service tax and gives a thrust to incentevise the 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 brings under its ambit exports of new agri-products under the Videsh Krishi and Gram Udyog Yojana.

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 dollar for 2007-08 and envisages that these would go upto 200 billion dollar 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 has 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 this sector to meet environmental and other standards abroad.

UNI