In a bid to provide a further impetus to exports which rose to a two-year high of 13 per cent in August following an improved global situation, the government on Saturday rationalised the rates of duty drawback and expanded the list of items under the tax refund scheme for exporters.
In a statement, the Finance Ministry said that the revised all industry rates of duty drawback which have been notified will come into effect from September 21. “Apart from the rate changes, to assist exporters, a large number of rationalisation measures have also been undertaken to realign entries, provide rates on more items...,” it said.
The rationalisation measures, the statement noted, is to better differentiate all industry rates for export products with higher duty incidence and to address classification issues on export products. “With the revised rates, the Central Government will continue to support exporters with substantial total drawback,” it said. The Finance Ministry also pointed out that while streamlining the duty drawback rates, the government took into account the recommendations of the committee headed by Planning Commission Member Saumitra Chaudhuri who is also a Member of the Prime Minister's Economic Advisory Council (PMEAC). The committee’s term has been extended for another three months.
“With the revised rates, the Central Government will continue to support exporters with substantial total drawback. Moreover, for expeditiously addressing exporters concerns, the term of the Committee has been continued for another three months,” it said.
Aimed at promoting exports with fair and representative rebate of the incidence of customs and central excise duties and service tax related with the manufacture of export goods, the Saumitra Chaudhuri panel was set up for having interactions with export promotion councils (EPCs) and other stakeholders to work out and recommend the duty drawback rates on the basis of relevant parameters, including prevailing prices of inputs, rates of duty/tax and value of export goods.