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K.R. Srivats

`The blanket decision is intended to facilitate more exports of tobacco as more units come up in special economic zones.'

NEW DELHI, May 10

IN an effort to facilitate more exports of tobacco from the country, the Centre has exempted export oriented units (EOUs) and units in the export processing zones (EPZs) and special economic zones (SEZs) from the payment of cess on export of tobacco.

As of now, this exemption will have ``no practical application'' as there are no EOUs and units in EPZs/SEZs that directly undertake export of tobacco.

``The blanket decision is intended to facilitate more exports of tobacco as more units come up in SEZs. A similar one had already been done for tea and rubber,'' official sources said.

An agricultural produce cess of 0.5 per cent of value of exports is currently imposed on tobacco on the basis of tariff values announced by the Ministry of Agriculture.

Exports of tobacco (both manufactured and unmanufactured) from India stood at Rs 683.72 crore during April-January 2002.

The total exports of tobacco from India during fiscal 2001-02 stood at Rs 903.39 crore.

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