ANNOUNCEMENT 02 Mar 2009

In March 2009, the government of India announced a change in the tax legislation for exporters.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Apr 2009 | Removal date: 30 Sep 2009
Still in force

Tax-based export incentive

On 2 March 2009, the Government of India vide Notification No. 92 (RE-2008) / 2004-2009 read with Public Notice No. 156 / 2008, has permitted the issue of duty credit scrip under the Market Linked Focus Product Scheme (MLFPS) at the rate of 2% FOB value of exports to exporters of leather products and specified garments to the EU and USA. 
 
The MLFPS typically grants exporters duty credit scrips at the rate of 1.25% FOB value of exports. Duty credit scrips are utilisable for the payment of dues to the government, and under some conditions, transferable in the open market as well.