In a pre-budget memorandum to the government, Samdria opines that a numberof member-countries of the WTO (such as Europe) are still extending similarbenefits to their exporters in some form or the other within the WTOparameters.

Till a new mechanism is worked out, the existing benefits under Section80-HHC should be continued and the differential treatment of traded andmanufactured exports under the same section be done way with, he said.

He noted that the service sector comprising 162 service providers under thecurrent exim policy constituted 12 per cent of the country's GDP and had avast potential of earning foreign exchange particularly in the areas oftourism and travel-related services, health systems, buying agencies andprofessionals. The service providers should therefore be extended the samebenefits as applicable to physical exports.

Samdria further suggested that deemed exports be treated at par withphysical exports so that the slowdown in the activities of Indian industrycould be halted and it could regain the growth momentum. Imports againstadvance licences should be discouraged by extending the benefit of incometax.

In addition, deemed exports should be exempted from the terminal excise dutyto avoid blockage of funds and be also exempted from sales tax and octroiduty. This would give a push to the economy and employment.

Samdria said that FIEO had been receiving representations from exportersthat some times inordinate delays took place in settlement of theirdrawback/excise refund/other claims. Though there was already a provisionfor payment of interest in case of delays for more than two months, yetexporters were not getting any benefit of this provision when settlement oftheir drawback claims was delayed.