Date:01/11/2007 URL: http://www.thehindu.com/2007/11/01/stories/2007110152800300.htm

Tamil Nadu

Fix rupee value at 42 against dollar: MP

Staff Reporter

TIRUPUR: K. Subbarayan, MP, on Wednesday asked the Centre to introduce dual dollar exchange rate for rupee, and fixing a permanent value of Rs. 42 against the dollar to help the exporting community.

In a memorandum to Finance Minister P. Chidambaram, Mr. Subbarayan said exporters should be provided pre and post shipment credit at 6 per cent. They should be exempted from paying service tax and fringe benefit tax.

The Centre should provide a compensation of 4 per cent to exporters against State levies such as Octroi and other taxes besides transaction cost.

Stating that the exporting industries in the country were facing a crisis, Mr. Subbarayan said even small-time vendors here would suffer because of rupee appreciation as the town was facing job cuts.