Duty Entitlement Pass Book (DEPB) a tax intensive scheme get extended from 30th June 2011 till 30 september 2011,which will benefit the exports sector.
As the scheme was set to close on June 30, exporters were agitated and lobbying hard with both Finance and Commerce ministries for its extension.
The government spends about Rs 8,500 crore annually for re-reimbursing exporters on the taxes paid on import equivalent content of export products under DEPB scheme. Ministry of Finance and Ministry of Commerce and Industry both said that the scheme will not be extended any more after September.
Share of about 60% of the funds under the DEPB goes to exporters in the chemical and engineering sectors. The government plans to replace the DEPB by an alternate Duty Drawback scheme.