The Hindu Business Line : TEA hails extension of interest subvention

Coimbatore, April 12 Tirupur Exporters Association (TEA) has said that the Union Commerce Ministry’s announcement of interest subvention extension for one more year for select sectors of exports affected by rupee appreciation in the annual supplement to foreign trade policy (FTP) is a timely move.

The extension of the duty entitlement pass book till May 2009 and the extension of the Income Tax exemption to 100 per cent export oriented units till March 2010 (from March 31, 2009) will enable exporters to work out the cost structures suitably, TEA President, Mr A. Sakthivel, has said.

Terming the Commerce Minister, Mr Kamal Nath’s presentation of the foreign trade policy as a pragmatic approach to keep the country’s trade interest and to enhance exports, Mr Sakthivel said the lowering of customs duty for capital goods and equipments availed under the export promotion capital goods (EPCG) scheme from 5 to 3 per cent, extending eligibility for incentives for fulfilment of export obligation and lowering the average export obligation under EPCG scheme for 2007-08 for sectors that had shown decline in exports of more than 5 per cent were the most needed supportive measures.

Mr Sakthivel appreciated the Commerce Minister’s resolve on refund of service tax on services linked to exports and the Ministry’s intention to refund the number of State taxes by formulating a rebate scheme with urgency. The move to bring advance authorisation scheme and the EPCG scheme under the electronic data interchange system with effect from July 1, 2008 will help reduce transaction costs. The proposal to take all EDI ports as a single port from January 2009 and the inclusion of a few additional ports under export promotion schemes would help bring down costs, he added.

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