Date:01/12/2007 URL: http://www.thehindu.com/2007/12/01/stories/2007120160820400.htm

Tamil Nadu

Bear hedging cost: traders

Staff Reporter

TIRUPUR: While welcoming the sops extended to textile exporters following the depreciation of dollar, Tirupur Exporters’ Association on Friday asked the Centre to compensate hedging cost or introduce dual exchange rate by fixing Rs. 42 against a dollar for a year for exporters.

In a memorandum to the Finance Minister, P. Chidambaram, the association president, A. Sakthivel, said exporters should be exempted from paying service tax and Fringe Benefit Tax.

Additional subvention of 2 per cent pre and post shipment credit and exemption of service tax in three more services would help exporters, Mr. Sakthivel said.