Lobbying hard for continuation of DEPB, industry body CII today said the termination of export incentive scheme will hurt exports in the absence of an alternative plan to neutralise local taxes on overseas shipments.
“Export margins are in single digit 6-7 per cent. It is a volume game,” CII Chairman on National Committee on Exports Sanjay Budhia said, adding, overseas buyers have become very demanding in the wake of tough competition.
The tax rebate scheme, Duty Entitlement Pass Book (DEPB), is due to end on June 30. The 14-year old scheme has been extended many times by the finance ministry on the recommendation of the Commerce Ministry since 1997.
The exporters across different sectors particularly the engineering segment are lobbying hard with the government for continuation of the DEPB on which the government spends Rs 8,000 crore.
