The government on Saturday rationalised the duty drawback and brought more items under the scheme for tax refund to exporters to give a boost to overseas shipments.
The revised all-industry rates of duty drawback, which have been notified, will come into effect from September 21, a finance ministry statement said.
“Apart from the rate changes, to assist exporters, a large number of rationalisation measures have also been undertaken to realign entries, provide rates on more items...,” it said.
The rationalisation measure is to better differentiate all industry rates for export products with higher duty incidence and to address classification issues on export products, it added. “With the revised rates, the central government will continue to support exporters with substantial total drawback,” it said.
The government had taken into account the recommendations of the committee headed by Planning Commission member Saumitra Chaudhuri. He is also member of the Prime Minister’s Economic Advisory Council.
Moreover, the statement said, for expeditiously addressing exporters’ concerns, the term of the committee has been extended for another three months.
The panel was set up to promote exports with “fair and representative” rebate of the incidence of customs and central excise duties and service tax related with the manufacture of export goods.
India's exports rose to a two-year high of 13% in August on account of improved global situation.