Exporters may get Rs 2000cr booster

NEW DELHI: In order to help the exporters ride out the impact of economic downturn, the government has prepared a stimulus package of Rs 2,000 crore for the sector. Export sector which has fallen by almost 15% from a year earlier in November, is likely to announce reliefs like 2% subsidy in interest to micro, small and medium exporters (MSME) across the board.In addition, a 2% subsidy for textile, marine, handicraft, leather, carpet sectors is also expected according to sources in the ministry of commerce. This, according to sources, is likely to cost the exchequer around Rs 600 crore.
However, the bigger sop for the exporters might be the Income Tax waiver under Section 80 HHC of the Income Tax Act. The government might reintroduce Section 80 HHC of the Income Tax Act which provides exporters exemption from Income Tax on their income. Even though, an income tax waiver could mean a revenue loss of between Rs 10,000 to 15,000 crore to the exchequer, the government is likely to go ahead with it as it will be a substantial incentive for the exporting community.