Indian leather sector to benefit from scheme extension
The Indian government has extended its tax rebate scheme for exporters by six months as well as introducing several new incentives.
The Duty Entitlement Passbook Scheme, which allows exporters to claim rebates on certain import taxes, will now be available until June 30, 2011, according to commerce and industry minister, Anand Sharma. It was originally set to expire at the end of this year.
Mr Sharma said that the country’s export target for the year is $200 billion, up from $178.7 billion last year. However, continued economic uncertainty has prompted the government to offer exporters more help. Last year it provided approximately $1.9 billion under the scheme.
The government also extended the 2% rebate on interest paid on loans to leather, textile and jute exporters. Previously, the rebate was available only to handloom, handicraft and other small-scale exporters.
