FTP tax sops to cost govt Rs 2,200 cr

NEW DELHI: Concessions announced in the new Foreign Trade Policy (FTP) will cost the exchequer an additional Rs 2,200 crore in 2009-10, a finance ministry official said.

���Our analysis (of FTP���s implications on indirect taxes) is Rs 2,200 crore for (this financial year),��� Central Board of Excise and Customs (CBEC) chairman V Sridhar told reporters on the sidelines of a CII function. CBEC is the apex body for administering indirect taxes.

The new FTP announced on August 27 had unveiled a slew of measures to boost exports, hit hard by the demand contraction in the developed world. India���s exports grew only 3.4% in 2008-09 to $168 billion.

The policy has extended a number of existing schemes, including the popular import duty reimbursement scheme DEPB and enhanced export credit guarantee cover (ECGC), till the end of the fiscal year and beyond and unveiled additional sops to allow exporters to make inroads into new markets and upgrade technology through cheaper imports of capital goods.