Pharmexcil has sought a reduction in the rate of interest on pre-shipment and post-shipment credit to exporters of pharmaceutical products, differential rate of buying currency from exporters, extension of Income Tax exemptions to EOUs and Vat integrated DEPB rates.
The Union Minister for Commerce and Industry has declared a relief package to exporters on July 12 to help the exporters to tide over the difficulties in view of the appreciation of the Indian Rupee vis-à-vis the US dollar. This relief package was extended nine identified sectors and Pharmaceutical Industry was not included in this.
Hence, Pharmexcil represented to the Minister to include the Pharmaceutical Industry, too.
The representation said the appreciation of Rupees vis-à-vis the US Dollar has affected the entire exporting community and not only to the nine specified sectors. It appealed to the Minister to extend concessional interest rates on pre and post shipment credit which is made applicable to the nine identified sectors and the SME sector.
Rupee appreciation has affected one and all. Hence, it should be extended to all the exporters, including large scale manufacturers. Large scale manufacturers also support the SME sector by way of contract manufacturing, etc. and also invest huge amounts in R&D.
It brought to the notice of the Minister that DEPB rates had been increased by 3 per cent for the nine identified sectors and 2 per cent for other sectors. It clearly showed discrimination against other sectors. Pharmaceutical industry had been discriminated against the other identified sectors in all respects.