GCCI for continuing DEPB scheme

While the central Government has withdrawn its DEPB scheme, stressing that export oriented units (EOUs) should be competitive in the international market on their own, without any assistance from the government, the Gujarat industries are pressing for the continuance of the scheme.

The scheme has the benefit of import substitution, utilisation of indigenous capacity and conserve the outgo of foreign exchange. This duty neutralisation scheme is necessary on account of high rates of taxes and the complex taxation structure of the country.

"The DEPB scheme of the central government acted like a compensation to the export oriented units to remain competitive in the international markets. The government has withdrawn its DEPB scheme, while the other countries provides huge subsidies to their export oriented units to remain internationally competitive." Chinubhai R Shah, president, Gujarat Chamber of Commerce and Industry, (GCCI) said.

The chamber has requested Union commerce minister Kamal Nath to see that the Special Economic Zone (SEZ) Act is immediately enacted. The SEZ scheme was incorporated in the EXIM Policy of March, 2002.

The GCCI has also demanded exemption from service tax, and central tax for the export oriented units in the country as it feels that this would give necessary push to such units.

The manufactured good qualifying as deemed exports be exempted from terminal excise duty. Deemed export should also be exempt from payment of sales tax.