July 25, 2002	Thursday	Jamadi-ul-Awwal 14,1423

GUJRAT, July 24: The exporters should be given compensatory rebate to off-set their losses, which they are incurring due to 8 to 9 per cent devaluation of the dollar.

This demand was made by Gujrat Chamber of Commerce and Industry president Haji Muhammad Ilyas while giving his mixed reaction on the new trade policy here on Wednesday.

He said exporters are facing a difficult time due to devaluation of dollar from Rs64, when they had booked orders, to Rs59, incurring huge losses.

He demanded of the government to expedite payment of sales tax refunds and the duty draw-back through banks as announced by the Finance Minister in the budget.

He, however, appreciated the decision to give duty draw- back on raw material indirectly imported. Earlier, no duty draw- back was being given on copper cathode which is imported by copper rod manufacturers and is considered a major raw material for electric fans. He hoped that duty draw-back and withholding tax charged from fan industry, will be added into duty draw-back being given to fan manufacturers.

He also demanded that export development fund (EDF) must not be charged from the exporters of non-traditional items like furniture and fans to encourage their exports.He welcomed the waiver of EDF on the export of non-traditional items with more than 10 per cent growth rate.

He demanded 25 per cent subsidy in freight on the export of all non- traditional items specially electric fans & furniture, without any condition.