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Tax sops in FTP to cost exchequer Rs 2,200 cr
September, 01st 2009

Tax concessions to exporters announced in the new Foreign Trade Policy will cost the exchequer an extra Rs 2,200 crore.    

"Our analysis (of FTP's  implications on indirect taxes) is Rs 2,200 crore for (this fiscal)," Central Board of Excise and Customs (CBEC) Chairman V Sridhar told reporters on the sidelines of a CII function.    

The new Foreign Trade Policy announced a slew of tax concessions to boost exports, which have been on the downslide since October 2008.    

Among other measures, the five-year FTP continues with the 2 per cent interest subsidy for exporters on pre-shipment credit and income tax exemption to 100 per cent Export Oriented Units (EOUs) till the end of next fiscal.    

Further, the government also extended the duty refund scheme till December 2010, and increased assistance for development of markets.    

The country's exports grew by a meagre 3.4 per cent in 2008-09 to about $168 billion.

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