NEW DELHI: The government on Monday started putting the stimulus package into operation for exporters by hiking the duty refund rates and
restoring them to the level before November 5, 2008, when the reimbursement was cut.
As promised in the second stimulus package, unveiled on January 2, the Directorate General of Foreign Trade (DGFT) has also notified extension of the popular Duty Entitlement Pass Book (DEPB) scheme for refund of taxes to exporters, till December, 2009.
The government had cut the tax refund rates for exporters in November after rupee appreciated fast to give higher realisations. However, with the worsening of the global markets, mainly the US and Europe, exports have started contracting putting lakhs of jobs at risk.
Concerned over the plight of exporters and the employment stakes in the sector, the government in the second stimulus package announced restoration of the the DEPB benefits taken away in November.
In the first package, the exporters were given interest subsidy of two per cent.
However, the Federation of Indian Export Organisations has expressed disappointment with the sops warning the government of "huge" job losses if more concessions were not given.
India exported goods worth over $160 bn last year and the target for the current fiscal is set at $ 200 bn.
Source : The Economic Times