The Hindu Business Line : Pharma body plea to cut interest on shipment credit

Hyderabad, Oct 22 Pharmexcil, the apex body of pharmaceutical export companies, has appealed to the Union Government to reduce the rate of interest on pre-shipment and post-shipment credit to exporters, in the wake of appreciation of rupee value.

It felt that appreciation of the rupees has affected the entire exports community and not just the nine specified sectors that had been extended the relief package by the Centre.

“The concessional interest rates on pre and post shipment credit are applicable to the nine sectors and the SME sector. Rupee appreciation has affected one and all. Hence, it should be extended to all the exporters including large scale manufacturers,” Mr Venkat Jasti, Vice-Chairman of Pharmexcil, said in a representation to the Government.

In a press release here, the association asked for extension of income tax exemptions for exports oriented units and differential rate of buying currency from exporters.

“Transaction costs such as electricity duty, duty on high speed diesel, furnace oil, State levies such as Octroi are common for all the industries across the board,” he pointed out.

DEPB (duty entitlement pass book) rates had been increased by three per cent for the nine sectors and two per cent for the other sectors. “The factors take in to account for increase of DEPB rates remain the same for the entire exporting community as a whole,” he felt.

“Pharmaceutical industry has been discriminated as against the other identified sectors in all respects,” he regretted.

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