The government is considering a booster dose for exports through rationalisation of the tax structure, introduction of new WTO-compatible subsidies and enhanced credit flow.
The commerce ministry has advocated a strategic tariff policy that differentiates between inputs imported for domestic consumption and those to be used as inputs for manufacturing goods for exports. A lower customs and excise duty regime will also eliminate drawback reimbursements.
Government sources said initial discussions have already been held with the finance ministry officials on these issues.
Also, charges on inputs like power are to be analysed as they form base input for exports of products like engineering goods and chemicals. The ministry is of the opinion that power tariff, for instance, exceeds international levels and needs to be rebated for duty drawback calculations.
The ministry has also recommended subsidy for the agriculture sector to cover marketing, handling and processing, international transport and freight costs.
It has also suggested subsidies and waiver of debt to PSUs involved in goods & services exports and on the disinvestment list. The Minerals and Metals Trading Corporation and ITDC have been identified for the purpose. The commerce ministry is of the opinion that WTO
