CII wants govt to scrap FBT in new Foreign Trade Policy

The government should announce measures like scraping fringe benefit tax (FBT), increasing duty refund rates for exporters reeling under the impact of global meltdown in the new Foreign Trade Policy to be unveiled in August, industry body CII has said.

"Exporters are now working on thin margins and taxations of the profit leaves exporters with no money for modernisation and expansion of manufacturing," CII said in a statement.

The chamber has recommended removal of fringe benefit tax (FBT), raise in duty refund rates by 5 per cent, extension of IT exemption given to software industry by another three years beyond March 31, 2010 among others.

Besides, it also sought inclusion of the EU and the US under the Focus Market Scheme for at least two years and reintroduce marketing development assistance scheme for all exporters.

With external shipments contracting for six months in a row, the country's exports aggregated $168.70 billion in 2008-09, managing a paltry growth rate of 3.4 per cent.