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Pendency in refund of taxes to be cleared soon

Pendency in refund of taxes to exporters till the end of last financial year will be cleared soon.

india Updated: May 06, 2006 16:41 IST
Press Trust of India
Press Trust of India

Pendency in refund of taxes to exporters including Terminal Excise Duty and Central Sales Tax, till the end of last financial year will be cleared soon, Director General Foreign Trade, KT Chacko said.

"There should be no delay in refund of taxes to exporters and in fact I have strongly pleaded that interest should be paid for delayed payment," he said.

The need for a more efficient and speedy system of refund of taxes to exporters was being earnestly taken up at the Central level, he said, during an interactive session on foreign trade policy in bangalore.

Dispelling "misinformation" that there were a number of schemes subsidising exports, Chacko said, apart from the reward scheme of Target Plus, to accelerate exports, there was no other scheme subsidising exports.

However, even the Target Plus scheme stood abolished from April One, 2006, he said.

Transferability of Target Plus scrip has been suggested, "which is not possible", he said.

Justifying restrictions on remanufacturing of capital goods, he said, "duties are necessary as remanufacturing in capital goods is becoming very vibrant. It was done as a market strategy as India will otherwise be flooded with remanufactured goods".

At present import of spares under EPCG scheme is allowed only for machinery imported under EPCG scheme.

Referring to value-addition in gold and studded jewellery, Chacko said value addition in gold jewellery had been reduced from seven to 4.5 per cent.

"However, value-addition in case of studded jewellery is being discussed at a meeting during this month end, after which a final decision will be taken," he said.

On allowing import of capital goods at "zero duty" instead of existing five per cent customs duty, he said it would not be in the country's interest.

Responding to the suggestion for including cashew, basmati rice and EOUs under Vishesh Krishi and Gram Udyog Yojana (VKGUY), introduced to encourage exports of agro products and promote rural employment, Chacko said, "VKGUY is an incentive and the government is a little careful about extending this to a larger segment. Since VKGUY is not WTO compatible, it will not be expanded," he said.

Flexibility had been sought on certain schemes like MDA (Market Development Assitance) and MAI (Market Assitance Intervention), Chacko said, adding these would soon be liberalised.

The interactive session was jointly organised by Federation of Indian Export Organisations (FIEO) and Federation of Karnataka Chamber of Commerce and Industry (FKCCI).

First Published: May 06, 2006 16:41 IST