Duty Entitlement Passbook (DPEB), a duty reimbursement scheme for exporters, has been given extension for one year by Cabinet Committee on Economic Affairs (CCEA).
With this extension, the government got time to streamline the replacement scheme.
DEPB scheme, which cost the exchequer Rs9,671 crore in 2005-06, is the most popular reimbursement scheme for exporters as it is aimed at compensating exporters for the customs duty paid on imports.
Complex nature of DEPB scheme has made it incompatible with norms of the World Trade Organisation, of which India is a signatory.
After EU's action against Indian exports on account of DEPB payments, the Commerce Ministry introduced a new scheme to replace DEPB, which was to compensate exporters for state taxes including electricity tax & petroleum/diesel tax and central sales tax.
The duty reimbursement scheme is the advance license scheme involving claims worth Rs8,851 crore.
Total burden to the exchequer for all export-linked drawbacks scheme was to the tune of Rs35,428 crore in 2005-06.
marketing@alchempro.com
