Government withdraws tax refunds on cement exports overnight

03 June 2008

The government has withdrawn tax refunds on cement exports that it had allowed only the previous day. This has been done to increase availability of cement in the domestic market and check price rise.

The directorate general of foreign trade had on Monday notified duty entitlement pass book scheme (refund of local taxes) on cement exports.

''The amendments stand withdrawn with effect from June 2 itself,'' a fresh notification said.

The commerce ministry had lifted the 46-day old ban on cement exports on 27 May. However, it had allowed shipments only through ports in Gujarat, which account for 95 per cent of the total cement exports. 

The government today said it is alive to the situation of soaring prices and may take further measures if required to tame inflation that has crossed 8 per cent.

Inflation for the week ended May 17 stood at 8.1 per cent against 7.82 in the previous week.