Export sops cost Rs 71,030 crore

PARLIAMENT PANEL REPORTS

A parliamentary panel has pulled up the government for the Rs 71,030 crore revenue loss in the last five years on various export promotion schemes and said the Centre should "gear up" the enforcement machinery to prevent frauds.

"In order to boost exports and thus generate foreign exchange, a significant amount of Customs revenue is foregone every year by the government through several export promotion schemes as duty drawback, concession to export-oriented units, export processing zones, advance licences, Duty Entitlement Pass Book and Export Promotion of Capital Goods schemes," the Public Accounts Committee said in a report tabled in Parliament.

Observing that during the last five years, Rs 71,030 crore was foregone on this account, the panel was irked by the "casual" approach of the department of revenue, under the finance ministry, on such serious matter "impinging not only on the government revenue but also on the government's policy to promote exports as an engine of growth".

"The committee would expect the (finance) ministry to ensure that the benefits of the schemes announced by them accrue to the deserving persons for whom these were intended and not cornered by unscrupulous elements," the report said.

Referring to the finance ministry's submission that a total amount of export bills outstanding beyond 180 days as on June 20, 3003 amounted to Rs 19,440.79 crore, the panel said it was "alarmed" at such a grim scenario wherein government's policy to promote and sustain growth in exports got derailed by the inability of administrative and regulatory machinery to monitor and ensure full realisation of proceeds from exports.