ANNOUNCEMENT 27 Feb 2014In February 2014, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
On 27 February 2014, the Indian Ministry of Commerce and Industry provided export benefits under the Market Linked Product Focus Scheme (MLPFS) for exports of finished leather, cotton yarn, cotton facbric, knitted fabrics, and cotton madeups to the European Union between 1 March 2014 and 31 August 2014.
The MLPFS was set up to offset high infrastructure and other market development costs for exports of certain products that have high employment potential. Exporters of these notified goods are entitled to a Duty Credit Scrip of 2% of the F.O.B value of exports that can be used to pay off various dues to the government.
The affected countries are (i) all countries that export the notified products to the EU countries served by India and (ii) all countries other than the EU where India exports these products but do not have this export benefit.