Financial Daily from THE HINDU group of publications
Wednesday, Apr 03, 2002
Industry & Economy
`Exim policy forward-looking'
NEW DELHI, April 2
ANNUAL changes made to the new Exim Policy in the coming years would only be "forward looking" and not be detrimental to the interests of the exporting community.
This was stated by Mr N.L. Lakhanpal, Director-General of Foreign Trade (DGFT), at an interactive session on the Exim Policy organised by the Confederation of Indian Industry (CII), in response to a query on whether there would be annual changes to the five-year Exim Policy announced on Sunday.
The DGFT pointed out that systems would have to be improved on a continuous basis and, therefore, some changes will have to be undertaken.
"We will have to change our systems and procedures to accommodate new achievements. For example you should look forward to a national value-added tax (VAT) system in the coming years, which will eventually help us in zero rating of exports. Therefore, changes will have to be made in case national VAT becomes a reality," Mr Lakhanpal said.
The DGFT pointed out that the country was yet to move into a system where there was full rebating of indirect taxes.
"The local taxes suffered at the State-level are still not rebated," he said.
The DGFT maintained that the Exim Policy team did not allow the current export downturn to "cloud their vision" for the next five years.
We would like to forget the current year as a bad dream.
However, there is a silver lining as we have retained our share in both value and volume terms though we did not grow in a tough global market situation,'' he said.
Later responding to questions, he said that his department would consult the Department of Economic Affairs before pronouncing policy guidelines on deemed exports benefits for supplies made to refineries during the Tenth Five Year Plan.
The acrylic fibre manufacturers sought clarifications as to why the DEPB rates applicable for them are much lower than those available to polyester staple fibre.
They also stressed on the need for specification of DEPB rates for acrylic tow.
Responding to complaints from domestic industry that States, through their fiscal policies, are trying to undo the policy initiatives at the Centre, the DGFT assured exporters that the Ministry of Commerce and Industry will leverage on the assistance earmarked to States towards infrastructural development for exports for removing the export irritants.
An exporter claimed that States such as Orissa and Madhya Pradesh have imposed a cess on captive power generation at a time when the Centre sought to encourage the export industry to go for captive generation.
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