The Hindu Business Line : Exporters may get rebate on education cess

EXPORTERS may have some good news coming their way. The Central Board of Excise & Customs (CBEC) intends to rebate the education cess payable by the exporters on their inputs or finished goods to ensure that taxes are not exported from the country.

After the announcement of the Budget proposals, exporters are hoping that they would get some relief, at least on the indirect taxes front, on the 2 per cent education cess suffered on their inputs or finished goods.

"We will look into this issue. If one were to go by the principle that taxes should not be exported, then some mechanism should be put in place for providing relief on this front", a senior Finance Ministry official told Business Line.

Exporters want the Government to alter the advance licence and other export promotion schemes such as the duty entitlement passbook (DEPB) scheme and the drawback scheme to specifically exempt them from the 2 per cent education cess or provide a rebate against such an impost.

A senior CBEC official indicated that the "rebate would be admissible" on the cess levied on the excise duty that is initially paid by the exporter and later taken as a refund on submitting the proof of completion of exports.

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