Letter to BS: Govt may have to stop export subsidies within next 9 months

The tax on petroleum products is so high that it inflates transport cost and eats up export profits. It must be waived off

With reference to “Govt may have to stop export subsidies within the next nine months” (April 2), we have been discussing stopping or phasing out export subsidies while formulating every FTP (Foreign Trade Policy), but it is impossible to do so as our cost of production is too steep to compete in export markets. The US is right in its own way, but we are a developing nation and devising export policies compatible with World Trade Organisation (WTO) schemes is hard. With complex local tax structure, labour laws, and high cost of logistics and inputs, incentivised export schemes are the