Govt package to help sustain export growth momentum: Kamal Nath

New Delhi, July 12 (UNI) Union Commerce and Industry Ministry, today announced an export package, comprising of enhanced rates in respect of duty entitlement passbook scheme (DPEB), to help Indian exporters hit hard by a rising Rupee.

The Ministry, this evening, announced a three per cent hike in DEPB rates for nine sectors - textiles (including handloom), readymade garments, leather products, handicrafts, engineering products, processed agricultural products, marine products, sports goods and toys. For the remaining sectors, the increase is two per cent, an official announcement said.

Similarly, Export Credit Guarantee Corporation (ECGC) premium has been reduced by ten per cent, an official statement said.

The government released Rs 600 crore to clear all arrears of terminal excise duties and Central sales tax (CST) reimbursement.

Mr Kamal Nath said rates of duty drawback has been enhanced by around 10 to 40 per cent, while rate of interest on pre and post-shipment credit had been reduced by two per cent.

He said the new DEPB rates are expected to help sustain the export growth, built upon the strength of a booming economy. He expressed hope that the package would neutralise the adverse impact of rising Rupee on exports, which have been built on the success of Indian economy and achieved through export earnings in recent years.

Indian industry, while talking of reduction in export realisation due to the Rupee appreciation, had also been saying that several state taxes and levies such as electricity duty, sales tax on petroleum products and central sales tax (CST) are presently not rebated. While demanding hike in DEPB rates, industry had contended that due to the Rupee appreciation, value addition prescribed in the DEPB calculation had gone down. The industry also claimed that the value caps, stipulated for various products for DEPB, were stated to be unrealistic.

The Ministry said the matter of notification of exemption/refund of service tax for exports, as was announced in the Foreign Trade Policy 2007, is, however, still under consideration.

UNI