BUSINESS

Committee suggests incentives to revamp EOU scheme

Seeking a complete revamp of the 30-year old export oriented unit (EOU) scheme, a government appointed committee has called for major tax incentives including exemption from customs duty, central excise and service tax to arrest the declining trend in setting up of EOUs. The government had in February set up a committee under the chairmanship of Development Commissioner, Noida SEZ, to suggest revamp the scheme in sync with the changing business environment and to merge with the special economic zones. “The committee has suggested fiscal measures, policy initiatives, procedural simplifications and steps to reduce transaction cost to arrest the declining trend in setting up of EOUs and their exports,'' Export Promotion Council for EOUs and SEZ said in a statement here. It has also suggested rationalisation of the administrative mechanism for setting up an EOU, setting up warehousing facilities outside the unit premises, expansion of deemed exports supplies at par with SEZ unit and domestic market supplier, sharing of facilities among EOU/STP/EHTP/SEZ unit and allow job work for DTA purpose. The EOU scheme includes export oriented units, electronics hardware technology parks and software technology parks.

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