India: Government gives tax incentive to exporters as global risks threaten shipments

August 23,

India will continue with a plan to refund import taxes to exporters in a bid to boost overseas sales, as risks to global economic growth threaten shipments.

“The global recovery so far has been fragile,” Trade Minister Anand Sharma said at a press conference in New Delhi today. “The uncertainty surrounding exporters’ prospects continues to linger.” He said the tax giveaways will cost the government 10.5 billion rupees ($225 million).

Refunds of taxes such as customs duties, under the government’s Duty Entitlement Pass Book Scheme, will be provided until June 2011, Sharma said today. The government will also extend it until March 2012 duty-free import of capital goods for exporters.

Source: Bloomberg