15 March, 2010

Govt to forgo Rs 50,000 crore revenue on export promotion schemes

The government would forgo more than Rs 50,000 crore revenue in the current fiscal due to various export promotion schemes, said the Economic Survey, while calling for rationalisation of these schemes.Substantial revenue is forgone on account of the different export promotion schemes.
In 2009-10, revenue forgone could continue to be significant at more than Rs 50,000 crore due to enlargement of the scope of schemes in the Foreign Trade Policy 2009-14 and improvement in the export promotion rates in the DEPB coupled with the bottoming out of the export fall," the Survey tabled in Parliament said.
As many as 2,000 products were added to Focus Market Scheme, New Market Scheme and other export promotion schemes in the FTP.Citing an example, the Survey said, currently capital goods imports draw duty of 7.5 per cent, while export promotion scheme for capital goods--EPCG--permit import of these goods at 3 per cent.