Delay in Announcement of Drawback Rates may hit Export
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.
Nov 23' 2005
