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TEA welcomes stimulus package for exporters from govt
Dec '08
A Sakthivel, President, TEA
A Sakthivel, President, TEA
We whole heartedly thank our Hon'ble Prime Minister, immediately after taking up the Finance Ministry also in his fold for announcing the supporting measures quickly.

The Prime Minister Office has today announced the stimulus package as a measure to help the exporting units, especially to the labour intensive textile sector. While welcoming the positive measures of the package, TEA President Shri. A. Sakthivel said the booster package is a boon to garment exporting units.

He added that 2% interest subvention on packing credit is a welcome move, but however, we requested 4% interest subvention since the Prime Lending Rates of the banks are on higher side and hope, in the second phase of stimulus package would consider it.

He welcomed the TUF allocation of Rs. 1,400 crores additionally which will help to clear the backblocks, which is need of the hour. He also happy to note that Service Tax refund will be given even after payment of Duty Drawback rates, which was represented by our Association.

He also welcomed the refund of Service Tax upto 10% for Foreign Agency Commission paid by the exporters. Reduction of 4% Ad volerum in CENVAT is a welcome move.

Provision of an additional Rs 1,100 crore for full refund of terminal excise duty/CST and another Rs 350 crore for export incentive schemes and a back-up guarantee of Rs 350 crore to ECGC (Export Credit Guarantee Corporation) for providing guarantee for exports to difficult markets and products will help for single buyer policy.

Shri. A. Sakthivel also requested the Hon'ble Prime Minister to consider 5 years holiday in payment of Income Tax for exporting units. Shri. A. Sakthivel informed that some of the requisition of the exporters have not been included in the stimulus package. He requested to consider 5 years holiday in payment of Income Tax for the exporters.

He also requested that exporters should exempted from the payment of all Service Tax and Fringe Benefit Tax instead of giving refund in Service Tax for few services. Drawback has increased to 12% for cotton knitwear garments.

Tirupur Exporters' Association

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