The Parliamentary Standing Committee on Commerce has recommended exempting exporters totally from payment of service tax.
The committee, headed by Rajya Sabha MP Shanta Kumar, made this and some other policy recommendations that included the one asking the government to consider extending the facility of interest subvention of 2 per cent on pre and post shipment export credit for all the sectors till March 31, 2011.
“On the question of duty refunds, the committee recommended that the Department of Commerce should impress upon the Ministry of Finance to consider exempting exporters totally from payment of service tax, instead of refunding them the same.
At the same time, the Parliamentary Committee recommended that the government should put in place a mechanism to establish a faster ‘single window clearance' system at all the airports, ports, land customs stations and inland container departments based on simple rules and procedures for promotion of exports.
“Top priority should be accorded to provide export infrastructure of international standards by having close coordination with various concerned agencies at both the Central and State levels,'' it said.
The committee also asked the Commerce Ministry to expedite setting up of the Small Growers Directorate, whereby these small growers could get some kind of registration and the benefits under the Central scheme start flowing to them. “The government should ensure timely implementation of the schemes for development support to coffee in the current financial year and give more incentives to the coffee growers for re-plantation. The crop insurance scheme should be made operational immediately and steps be taken for its popularisation among the tea, coffee, rubber and spices growers and for their speedy enrolment under the scheme,'' the committee said.
