Second Economic Stimulus Package announced by Government

NEW DELHI. 2nd January 2009.

 

The Government has announced Second Economic Stimulus Package .The Highlights are as under:

 

1. Exemptions from CVD on TMT bars and structurals, and from CVD and Special CVD on cement, which were given to contain inflation, are being withdrawn. Full exemption from basic customs duty on zinc and ferro alloys, which was also provided to contain inflation, is being similarly withdrawn

 

2. It has been decided to restore DEPB rates to those prevailing prior to November 2008.The DEPB Scheme would be extended till 31.12.2009.

 

3. Duty drawback benefits on certain items including knitted fabrics, bicycles, agricultural hand tools and specified categories of yarn has been enhanced. These changes will take effect retrospectively from September 1, 2008.

 

4. Accelerated depreciation of 50% will be provided for commercial vehicles to be purchased on or after 1.1.2009 upto 31.03.09.

 

5. To consider procedural issues where modification of procedures could reduce delays faced by exporters and similar problems, Government has decided to constitute a Committee under the chairmanship of the Finance Secretary including Secretaries of the Departments of Revenue and Commerce to look into and resolve these issues on a fast-track basis.

 

6. EXIM Bank has obtained from RBI a line of credit of Rs.5000 crore and will provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.

 

7. GOI will work with State Govts. to encourage them to release land for low income and middle income housing schemes.

 

8. States, as a one time measure upto 30.06.2009, will be provided assistance under the JNNURM for the purchase of buses for their urban transport systems. A scheme towards this end will be announced shortly.

 

In a co-ordinated move RBI has also announced Rate Cut. Home Loan Rates, Auto Loan Rates & Retail Loan Rates are set to be lowered as RBI has cut Repo Rate by 100 BPS to 5.5 per ent and Reverse Repo Rate by 100 BPS to 4 percent  with immediate effect -CRR has also been cut by 50 BPS to 5 per cent from 17th January and Banks have thus got Rs 20000 Crore of liquidity

 

(Source: Allindiantaxes)

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