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In a further bid to boost India’s exports, the government proposes to discontinue almost Rs.100 crore of cess on exports. Indicating this at a news conference today, Shri Kamal Nath, Minister of Commerce and Industry, said: “This will make our exports more competitive. We cannot subsidise exports like the developed countries, but at least let us not tax them”.
The cesses on exports sought to be abolished are:
· APEDA Cess: Rs. 50 crore per year
· MPEDA Cess: Rs. 20 crore per year
· Coffee Cess: Rs. 12 crore per year
· Spices Cess : Rs. 7 crore per year
· Tobacco Cess: Rs. 3 crore per year
(APEDA: Agricultural and Processed Foods Export Development Authority
MPEDA: Marine products Export Development Authority)
At present, the export of several agricultural products is subject to levy of a cess under different enactments.
Meanwhile, India’s merchandise exports during April-July of the current financial year 2004-05 are estimated to have increased by 21.33% to reach a level of US $ 28.1 billion from US $ 23.1 billion during the corresponding period of the previous financial year 2003-04.
SB/SS/MRS
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