Financial Daily from THE HINDU group of publications
Tuesday, Jan 24, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 24, 2006 |
|
|
|
|
|
|
|
Home Page
-
Cars Government - Policy Industry & Economy - Exports & Imports Hotel, travel, tourism sectors — Govt plugs loophole in car imports under EPCG scheme
K.R. Srivats
New Delhi , Jan. 23 THE Government has tightened the import regime for motor cars, sports utility vehicles (SUVs) and all-purpose vehicles under the export promotion capital goods (EPCG) scheme by hotels, travel and tourism and golf tourism sectors. The move comes in the wake of misuse of the EPCG scheme for import of cars by some segments of the travel and tourism industry. The Directorate-General of Foreign Trade (DGFT) has now stipulated that import of motor cars, SUVs and all-purpose vehicles under the EPCG scheme would be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning or operating golf resorts whose total foreign exchange earning from these specific businesses in the current and preceding three licensing years is Rs 1.5 crore or more. Moreover, the Government said the `duty saved' amount on all EPCG licences issued in a licensing year from import of motor cars, SUVs and all-purpose vehicles should not exceed 50 per cent of the average foreign exchange earnings from the hotel, travel and tourism and golf tourism sectors in the preceding three licensing years. Commenting on the Government's move to bring in new conditions on car imports under the EPCG scheme by the hotel, travel and tourism sector, Mr Ajai Sahai, Director-General, Federation of Indian Export Organisations (FIEO), told Business Line that these steps would curb the misuse of the EPCG scheme. He also pointed out that foreign exchange earnings from the hotel, travel and tourism and golf tourism businesses alone would be counted for determining the Rs 1.5 crore-threshold limit to become eligible for car imports. A tourism industry analyst, Mr Rabindra Seth, highlighted the current trend of less and less dependence of imported cars by the hotels, travel and tourism sectors. "There are lot of good quality cars catering to various segments that are now available within the country. In the coming years, the quantum of imports would further come down. It is mainly for specially customised cars that one may have to look at imports," he said.
Related Stories: More Stories on : Cars | Policy | Exports & Imports
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|