NEW DELHI: Reacting to the drawback rates announced by the Government in the wake of GST regime, Shri Ganesh Kumar Gupta, President, FIEO said that the new drawback rates basically factors the basic customs duty on the inputs used in export production. However, lot of embedded taxes like taxes on power & electricity, taxes on petroleum & diesel products, embedded taxes on products which are exempt also add to the burden of the exporters. He urged that Government of India should look into offsetting these taxes suitably.
President FIEO said that merchant exporters are exporting goods procured from EOUs and SEZs while paying the basic customs duty on the inputs used in such products and therefore the duty drawback rates should be made available to them by amending the Notification providing drawback irrespective of goods manufactured by the 100% EOUs/SEZs.
President, FIEO said that since the facility of composite drawback would not be available from 1st October, 2017, the refund to the export sector may be allowed expeditiously as stated by the Ministry of Finance in its recent Press Release.