Govt relief package disappointing: DEA

New Delhi, July 15: Delhi Exporters Association (DEA) has expressed dissatisfaction over the relief package given by the government to salvage the exporting community saying that it is too late and too little.

DEA President S P Agarwal in a statement said that this has come out after about more than four months. The rupee started appreciating since late March and beginning April and since then exporters started facing losses on the incoming payment of invoices in dollars.

''After a big cry from all exporters through out the country, we were expecting a relief package which would balance out the 12 per cent loss exporters had in fulfilling their export order commitments. We now find that the relief given by the government such as two-three per cent increase in Drawback rates on certain items of exports, two per cent cheaper export credit and less premium on insurance will not be sufficient enough to make up the loss we have suffered,'' Mr Agarwal said.

DEA President said that the Association has pointed out time and again that ''our transactional cost has gone very high and we are exporting taxes to a great extent. No relief in this behalf.'' The exporters are paying Service Tax on at least 25 different heads of exports and this had made them uncompetitive in the world market.

The Commerce Minister has promised twice that exporters would be exempted from paying service tax, but no relief as yet.

The exporting community has been demanding revival of Sec 80HHC of income tax act so that exporters are exempted from income tax as in the past and as the concession given to 100 per cent EOU and SEZ.

But, no relief, Mr Agarwal said.

The exporters are still paying VAT first and blocking their money to get it back later which they do not get on time.

The DEA has requested the Prime Minister once again ''to kindly reconsider our relief package and give us timely cash enough in order to wipe out the losses we have made and make competitive offer to our foreign buyers for future business. We want the cash flow now, the increase of Drawback will give us cash about two-three per cent only when the goods are shipped and the payment are received. It takes months. We thank the government for giving us additional benefits of DBK retrospectively from 1st April, 2007.'' Exporters urged that drawback payment should be given automatically and immediately without any supplementary claim to be filed.

UNI