Monday, September 16, 2013: Welcoming the Indian government’s move to rationalize duty drawbacks in order to increase shipments, the Federation of Indian Export Organisations (FIEO) has demanded review of the rates with respect to electronic sector. “By and large drawback rates are on expected lines as generally the decline is in the range of 0.1 per cent to 0.5 per cent with few exceptions,” Business Line quoted Rafeeque Ahmed, FIEO President.
According to FIEO, duty drawback rates for black & white TVs dropped from four per cent to one per cent, public address systems/loudspeakers dropped to one per cent from two per cent and quartz watches is at three per cent (earlier four per cent).
More items have been added under the scheme for tax refund to exporters in order to spur overseas shipments. Therefore, the revised All Industry Rates of duty drawback that has already been notified will be effective from 21 September, 2013.
For this purpose, the government also considered suggestions by the committee headed by Planning Commission Member, Saumitra Chaudhuri, who is member of the Prime Minister’s Economic Advisory Council.
In addition to it, the exporter’s body has even welcomed rise in rates for items such as silk garments, fabrics and yarn, gold and silver jewellery including milk products, where export growth rate is good.
It is noteworthy that the country’s exports rose to a two year high of 13 per cent in the month of August due to improved global situation.
