Rejecting exporters’ repeated pleas, the Finance Ministry today said the popular DEPB tax rebate scheme will come to an end from June 30, saving revenue for the government.
“All exports will be zero-rated after Duty Entitlement Pass Book (DEPB) scheme ends. Two similar kind of schemes cannot go on. It will save some revenue for the government,” Revenue Secretary Sunil Mitra told reporters here.
The government spends about Rs 8,000 crore on rebating exporters for levies under the 14-year old DEPB scheme. After repeated extensions, the scheme is to end next month, but exporters are lobbying hard for its continuation.
Official sources said that exporters can avail a refund of local taxes through the alternative window of duty drawback.