There is need to extend the 2 per cent interest subvention for exporters beyond March 31, 2010. Duty drawback rates in India are substantially lower compared to major competing countries. They should therefore be increased and state-level taxes should be factored in while determining the rate of duty drawback. Hundred per cent export oriented units should also be eligible for duty drawback. I urge the government to exempt service tax in place of the current refund mechanism as the procedures for refund are cumbersome.
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