Nothing for exporters except sympathy: EEPC

Kolkata, Feb. 29 Reacting to the Union Budget proposals, Mr Rakesh Shah, national chairman of Engineering Export Promotion Council (EEPC) said here today that the Budget had nothing for exporters except “sympathy”.

He said the Budget has completely bypassed the urgent requirements of engineering exporters.

Talking to Business Line, he said the proposals carried no major policy initiative to address the sharp slowing down of exports – from 25.3 per cent growth in 200607 to 7.7 per cent (in rupee terms) in the first 9 months of the current fiscal.

He said exporters had fervently pleaded for some fundamental policy initiatives to correct the imbalances in the economy that had led to declining fortunes of the exporting community of late. He, however, welcomed the abolition of import duty on steel melting and aluminium as well as lowering of Cenvat rate to 14 per cent.
No ‘exemption scheme’

He said the exporters were hoping that the service tax refund benefits for 13 services would be converted into an ‘exemption scheme’, as promised by the Government.

He said expectations over inclusion of service tax on foreign commission agents, which was the most important post-production service tax component, in the refund/exemption mechanism has been belied.

According to him, while the export duty on chrome ore has been increased, “no such duty has been imposed on export iron ore, which has been the root cause for the sharp escalation of steel prices in the country.”

He felt while the finance minister mentioned about the monopolistic stuation in the steel and cement industries in the country, “no policy pronouncement has been made to usher in competitive conditions, especially in the steel sector, such as imposition of an export duty on steel exports to stabilize domestic steel prices.
‘Inflationary’

According to Mr M.F. Vohra, president of All India Rubber Industries Association (AIRIA), the budget may encourage inflation. Pointing out that no specific relief has been given to the rubber goods industry, he said there was no concession on the inverted duty structure on natural rubber nor any duty reduction for synthetic rubber.

“On the other hand, there is enhancement of duty on crude sulphur.”

The feel good factors, according to him, were steps to further develop the it is, allocation of Rs 19.41 crore on R&D for development of rubber plantations, slashing of Cenvat from 16 per cent to 14 per cent etc.