Taking up the provisions for direct taxes, in line with our objective of giving a thrust to exports, I propose to increase the tax incentive for exporters under section 80 hhc of the "income" tax act. Profit on sale of exam. Scrips will be treated as exports profit in the proportion of the export turnover to the total turnover of the business. Hon. Members will recall that I had proposed certain modifications in the scheme of tax concession for tourism industry as contained in section 88 hhd of the income-tax act. Under the existing provisions, this concession is available only to approved hotels, approved tour operators and travel agents actually in receipt of payment from foreign tourists in convertible foreign exchange. The modification proposed in the bill was intended to secure that this tax concession would also be avilable where payments for providing services to the foreign tourists are received in Indian currency from another hotel, tour operators, etc. Out of the funds obtained by conversion of foreign exchange received from the foreign tourists. Members would recall that I had stated in my budget speech that the credit institutions will have the freedom to pass on the burden of interest tax to the borrowers by adjusting suitably the rate of interest. It has been brought to my notice that in many cases where term loans have already been sanctioned, the credit institutions may be able to very the rate of interest because loan agreements do not certain a provision permitting such variation. Israel is using the money that they are earning by selling all these weapons to India to suppress the just aspirations of the Palestinian people. The whole world is looking at us and wondering what is happening to India, which has been upholding the cause of the downtrodden, the freedom struggle and the Palestinian's cause; they are virtually supporting Israel by buying weapons worth nine billion dollars. We have our own infrastructure nationally. We have our domestic infrastructure.
