Upcoming FTP: EPCES hopes for exporter friendly policy

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SME Times News Bureau | 22 Nov, 2014
In order to offer long term and stable economic policy and to attract investment, the apex exporters body, Export Promotion Council for EOUs and SEZs (EPCES), has expressed hope for exporter friendly new Foreign Trade Policy (FTP) and has suggested that SEZ Act & Rules should not be altered by any other Act or Rule.

P.C. Nambiar, Chairman, Export Promotion Council for EOUs and SEZs (EPCES) Friday in a statement informed that Government has yet to announce Foreign Trade Policy 2014-19. The new Foreign Trade Policy has been delayed as Ministry of Commerce & Industry and Ministry of Finance are yet to take a final call/decision on granting tax incentives to various export promotion schemes.

The Foreign Trade Policy gives guidelines for enhancing exports with the overall objectives of publishing economic growth and generating employment. Under the Foreign Trade Policy, the Government gives fiscal incentives to exporters under different export promotion schemes.

Nambiar informed that SEZ Act was enacted for the purpose of providing long term stability and continuity to the SEZ Scheme. SEZs have made huge investments and are generating employment for the country.

The exports from SEZ sector during 2013-14 is to the extent of Rs.4,94,077 crores with a contribution of 30% to the national exports and are generating employment to 12,77,645 people in the country and investments worth Rs.3,01,656 crores have been made in SEZs. It clearly indicates that SEZ Scheme is moving in the right direction in achieving its stated objectives of increasing exports, attracting investments, providing employment, generating additional economic activity and creating world class infrastructrure in the country.

He further said that Government has so far formally approved 564 SEZs. Out of which, 388 SEZs have been notified and 192 SEZs are in operation and remaining 196 SEZs, though notified but are yet to become operational mainly because of the ambiguity in the tax laws and also their apprehension of not getting the MAT paid by them or adjusted within the prescribed time limit.

Nambiarsaid that PMO is keen to revive the Special Economic Zones and make it an effective instrument of industrial production economic growth, export promotion and employment generation.

As regards MAT charged @ 18.5% if paid even the exporting companies making minimum profits are not able to adjust the credit within the prescribed time limit of 10 years. EPCES has made a request for reduction of MAT rate to 7.5% so as to get the entire MAT credit during the stipulated period.

He further stated that country’s export and manufacturing are not growging at healthy rates and SEZs can play an important role in boosting both exports and manufacturing besides generating jobs.