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New Duty Drawback Scheme to be Easier
The exporters need not worry over the new duty drawback scheme — that’s the message Central Board of Excise and Customs (CBEC) wants to give through its special ongoing clearance months from May 1 to June 30.
Clearing the cloud of confusion over compensation to exporters in the form of tax refund for the customs and excise duties they had paid as input, the Board has asked exporters to settle pending tax refund issues during clearance month and get refunds faster.
A duty drawback committee is in the final stage of submitting its report by the month end.
Some exporters had expressed apprehensions after the government moved from the DEPB (Duty Entitlement Pass Book) scheme to drawback scheme in 2011, fearing reduction in rates.
Under this, an exporter gets back a set per cent of tax against the excise or customs duty paid by him on inputs. Under the DEPB scheme, exporters received duty-free scrips, which were used to pay customs duty.
The government has paid R11,474 crore till February for 2011-12 on refunds, against R8,859 crore in 2010-11.
“It’ll be wrong to say that exporters may suffer loss in refunds due to the drawback scheme, as we’ve paid 30% more till February over the previous fiscal ,” a top CBEC official said.
Hindustan Times, New Delhi, 15-05-2012