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Tax concessions announced under the new Foreign Trade Policy to boost exports will cost the exchequer an extra 2,200 crore rupees. "Our analysis (of FTP's implications on indirect taxes) is 2,200 crore rupees for (this fiscal)," Central Board of Excise and Customs (CBEC) Chairman V Sridhar told reporters here on Monday. The new Foreign Trade Policy announced a slew of tax concessions to boost exports, which have been on the downslide since October 2008. Among other measures, the five-year FTP continues with the 2 percent interest subsidy for exporters on pre-shipment credit and income tax exemption to 100 percent Export Oriented Units (EOUs) till the end of next fiscal. The government also extended the duty refund scheme till December 2010, and increased assistance for development of markets. India's exports grew by a meagre 3.4 percent in 2008-09 to about 168 billion dollars.

Tax concessions to exporters to cost extra Rs 2,200 cr