Govt mulls more steps to boost exports

“A blue print of policy initiatives to boost export is being prepared to be put before the new commerce minister for consideration,” official sources told Deccan Herald. The measures would provide for tax benefits and simplification of export procedures.

Fringe benefit tax

The commerce ministry has held series of meetings with various export organisations for their feedback.

Several exporters’ bodies have pointed out that FBT discourages exporters for aggressively market in new and untapped markets.

 “It is being proposed to exempt exporters from the ambit of Fringe Benefit Tax (FBT),” sources said.

The Federation of Indian Exporters Organisation (Fieo) is pitching for exempting profit earnings of exporters from income tax for three years.

To enable Indian exporters become more competitive the ministry may recommend for increase in duty refund against taxes paid on inputs for production of export items, sources said, adding extending interest subvention scheme, under which government provides interest subsidy to exporters, is also being considered. The commerce ministry is also working measures to further simplify export procedures.