The New Policy adds 26 additional markets (countries) - 16 in Latin America and 10 in Africa and CIS countries - have been added under Focus Market Scheme (FMS). Incentive to markets under FMS has been increased to 3% from 2.5% of value (exporters will get back this amount in cash).
At present, exports to Europe, the US and Japan amount to 36%,18% and 16%, of India's total exports of $168bn in 2008-09. Due to the global recession, India's exports have declined by almost 30% in the last 10 months. By 2025, we expect to double India's exports of goods and services. In the last years of the five-year policy, India growth figure of 25% annually. The long-term policy objective, he said, would be to double India's share in global trade by 2030.
India had a 1.64% share in global trade in 2008. However, from the earlier projection. India will grab 5% share of global trade by 2030. It is believed that the revised target is more realistic in the changed circumstances.
1. Incentive on products under FMS has been increased to 5% from 1.25% of value of exports
2. Two percentage point interest on export finance till March 2010.
3. Banks to extend dollar credit to exporters in India
4. It can import capital goods at zero duty
5. It can sell 90% of the output in domestic market instead of 75%. But over a period of 50% of the production has to be exported
6. Scheme is extended till December 31, 2010
7. Diamond will be set up to make India a diamond international trading hub
8. Limit on value of goods carried for participation in the exhibition has been raised to $5 million from $2 million. That on sample has been increased to $1 million from $0.1 million
Draft Direct Taxes Code
The code proposes to consolidate and amend the law relating to all direct taxes - income tax, dividend distribution tax, fringe benefit tax and wealth tax - and ultimately replace the Income Tax Act of 1961.
The draft code proposes a new, substantially liberalized tax rate for individual taxpayers. For example, in the case of every individual other than women and senior citizens, the code does not propose to levy any income tax on a total annual income of up to Rs. 1.5 lakh. The government proposed to tax income up to Rs. 10 lakh at 10 per cent, while under the existing regime this relief is limited to people with an income of Rs. 1.5 lakh to Rs. 3 lakh.
Income between Rs. 11 lakh and Rs. 25 lakh will be taxed at 20 per cent and earnings thereafter will attract a rate of 30 per cent, as per the draft and earnings thereafter will after a rate of 30 percent, as per the draft of the new Direct Taxes Code that seeks to improve the efficiency and equity of the tax system by eliminating distortions in the structure, bringing about moderate levels of taxation and expanding the base.
Income between Rs. 11 lakh and Rs. 25 lakh will be taxed at 20 per cent and earnings thereafter will attract a rate of 30 per cent, as per the draft and earnings thereafter will after a rate of 30 percent, as per the draft of the new Direct Taxes Code that seeks to improve the efficiency and equity of the tax system by eliminating distortions in the structure, bringing about moderate levels of taxation and expanding the base.
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