The Thane-based Chamber of Small Industries Association (COSIA) has requested the Centre to extend the 'duty entitled pass book' (DEPB) scheme, a tax refund scheme for exporters using imported materials, for another three years.
In a press release, COSIA president M R Khambete said the renewal of the DEPB is absolutely essential to meet the government's export targets.
The government has set an export target of $500 billion in the next three years. Continuation of the scheme, at least for the next three years, will help achieve the ambitious target, he added.
The demand has been forwarded to the centre, the release added.
The scheme, under which exporters get refund of duties on import content of their export products, ends this month and the government has indicated that it might be withdrawn.
Among all the incentives, DEPB scheme is most beneficial to boosting exports, Khambete said.
"The proposed withdrawal is a matter of concern for exporters, particularly those in the micro, small and medium enterprise (MSME) sector," he said.