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Exporters put off by govt failure to implement incentives
03 Jun '11
2 min read
Possibilities of implementation of the much-acclaimed exports cash incentive scheme by the Government seem to be diminishing, as the guidelines drafted for disbursing the incentive is pending with the Cabinet's Finance Bill Committee since January this year.
The Ministry of Commerce and Supplies (MoCS), which sent the draft guidelines to the Cabinet for getting its approval, is now losing hope that it would be able to implement the programme before the end of the current fiscal year in mid-July.
In the budget for 2010-11 fiscal, the Government had declared to give cash incentives of around two to four percent of the overall value of exports to third country exporters based on the extent of value addition, so as to strengthen exports in convertible currency.
Under the new export subsidy scheme, exporters of goods that generate value addition of up to 80 percent would become eligible to receive cash incentive of three percent, while the goods gaining value addition beyond that would become eligible for cash subsidy of four percent.
The business community, which had warmly welcomed the programme, is now in despair over non-implementation of the same.
As such, exporters too have condemned the Government's failure to fulfil its commitments. They have even questioned as to how they can keep faith in the Government if it could not manage to implement its declared programmes.
During the first three quarters of the current fiscal year, the country exported Rs. 47.98 billion worth of goods, which is 7.4 percent higher than the goods exported during corresponding period of last fiscal.
The Ministry of Commerce and Supplies (MoCS), which sent the draft guidelines to the Cabinet for getting its approval, is now losing hope that it would be able to implement the programme before the end of the current fiscal year in mid-July.
In the budget for 2010-11 fiscal, the Government had declared to give cash incentives of around two to four percent of the overall value of exports to third country exporters based on the extent of value addition, so as to strengthen exports in convertible currency.
Under the new export subsidy scheme, exporters of goods that generate value addition of up to 80 percent would become eligible to receive cash incentive of three percent, while the goods gaining value addition beyond that would become eligible for cash subsidy of four percent.
The business community, which had warmly welcomed the programme, is now in despair over non-implementation of the same.
As such, exporters too have condemned the Government's failure to fulfil its commitments. They have even questioned as to how they can keep faith in the Government if it could not manage to implement its declared programmes.
During the first three quarters of the current fiscal year, the country exported Rs. 47.98 billion worth of goods, which is 7.4 percent higher than the goods exported during corresponding period of last fiscal.
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