Federation of
Indian Export Organisations (FIEO) has cautioned
that more delay in announcing new drawback
rate may hit exports. Exporters have been
seeking a mechanism to factor in international
price of inputs in drawback rates in a time
bound manner.
FIEO president Mr. O P Garg
has said that such increase, even if announced
now, may not provide stability as after
three months a new exercise will begin after
the announcement of Budget 2006
FIEO has suggested that the
Department of Revenue should factor the
changes in international price of inputs
and provide a mechanism for its adjustment
during the year. Drawback payments are made
to exporters in lieu of the input taxes
paid by them for manufacturing products
for exports.
Despite the delay, Mr
Garg said that the hike in drawback would
increase competitiveness of engineering,
textiles and sports goods industry.
|
