Export sops led to Rs 70K cr rev loss
The government’s revenue sacrifice to promote exports in 2010-11 zoomed to Rs 70,877 crore, up from Rs 52,606 crore a year ago, says a report by the Comptroller and Auditor General of India (CAG).
“Duty foregone under various export promotion schemes during the year 2010-11 was Rs 70,877 crore which was approximately 52 per cent of the total receipts of customs duty,” said the report tabled in Parliament on Friday. The government collected Rs 1.35 lakh crore as customs duty during 2010-11.
In order to promote exports, the government operates various incentive schemes like advance licence duty, entitlement passbook scheme (DEPB), export promotion capital goods (EPCG), Special Economic Zone (SEZ) and Export Oriented units (EOUs).
According to the CAG report, the government sacrificed a revenue of Rs 25,423 crore on advance licence duty scheme, followed by EPCG (Rs 10,621 crore), duty drawback (Rs 8,859 crore) and DEPB (Rs 8,736 crore).
The amount of customs duty assessed up to March 2011, which was still to be realised as on December 2011 was Rs 9,852.29 crore.
CAG said it was noticed that revenue of Rs 72.74 crore was due from exporters and importers who had availed of the benefits of the duty exemption schemes but had not fulfilled the prescribed obligations or conditions.
Further, the audit also detected incorrect assessment of customs duty totalling Rs 28.25 crore, the report said.
“These arose mainly due to non-realisation of cost recovery charges, excess refund of additional duty of customs, non-levy of anti dumping duty and incorrect assessment of high sea sale etc,” the report added.
SOURCE: financialexpress.com
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