No change in valus caps has so far been suggested by the Union Government in the Duty Entitled Pass Book (DEPB) scheme, as per KT Chacko, Director General of Foreign Trade.
Tax components like service tax, fringe benefit tax and recent change in custom duty will all be considered while fixing the new DEPB rates to negate their effect.
Chacko stated that Government was aware of misuses of the DEPB scheme by fake goods exporters, yet it continued the scheme for one more year as exports grew by and large.
Exports related to post production should be exempted but government planned to refund the service tax for which refund mechanism needed to set up.
Government is also looking top set a mechanism that would solve the problem of indirect taxes affecting the cost of export.
SK Jain of Federation of Indian Export Organisation said that product focus scheme has introduced for notified products like leather products, sport goods, hand loom and handicrafts.
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