The Hindu Business Line : DEPB scheme may get a facelift: Assocham

THE Associated Chambers of Commerce & Industry of India (Assocham) has said the Duty Exemption Pass Book (DEPB) scheme may see a kind of redesigning in the forthcoming National Foreign Trade Policy (NFTP).

The "anomalies" between the Duty Draw back (DBK) scheme and DEPB in terms of taxation benefits may also be removed.

Addressing a press conference here today, Mr Anil K. Agarwal, alternate president of Assocham, said that according to the latest feedbacks received by the chamber, the Government was likely to redesign the DEPB scheme so as to make it more investor-friendly and plug the loopholes to stop fraudulent activities.

The Centre had previously announced scrapping of DEPB scheme with effect from April 1, 2005.

Pointing out that the existence of DEPB and DBK are not threatened by the WTO conditionalities, Mr Agarwal said, "The DEPB and DBK should continue. So far as our knowledge goes, they will launch the scheme in a different format and in a different name". According to him, "The new scheme may require lesser interface with the DGFT".

About the tax anomalies between DEPB and DBK schemes, he said that "though both were of similar nature, income-tax was applicable on DEPB benefits." Duty draw back scheme, on the other hand, enjoys income-tax exemption. "We have recommended to the Government to remove this illogical differences."

Meanwhile, the chamber has decided to involve itself in the Union Government's initiative to improve the `urban-rural connectivity'. As per the programme, Assocham will extend `support' to the rural Industrial Training Institutes (ITIs).

"It is not IITs but ITIs which are the real vehicle of knowledge to the rural mass. We strongly believe that given support, IITs could help develop agri-processing and other industrial activities in rural India," Mr Agarwal said, adding that the chamber would support ITIs both in the form of sponsorships and training facilities.

"We will launch the project in certain regions of the country. The groundwork is on. We expect to start the programme in the next two months," he said.

To improve its brand equity among the apex chambers Assocham has also undertaken a revamp programme. "We had lost our earlier glory for a variety of reasons. We have taken steps to revamp the image in the last two years and this has started paying dividends," he said.

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DEPB scheme may get a facelift: Assocham