Centre notifies rebate of state levies on garment exports

The rebate shall be given under the 'Scheme for rebate of state levies on export of garments 2016'. The scheme will come into effect from September 20, 2016 and will remain in operation for a period of three years.

For the scheme, the amount of rebate shall be calculated using the FOB value of the garment exported.

The rates (including applicable caps) of rebate of the state levies on exports of garments manufactured in India shall be recommended by the Drawback Committee constituted by the Central government and notified by the ministry of textiles.

However, the rebate will not applicable for exports made under pre-existing Advance Authorisation Scheme. Further, the rate and rebate shall be applicable only to exporters who have constituted and Internal Complaints Committee (ICC) in pursuance of the sexual harassment of women at workplace (prevention, prohibition and redressal) Act, 2013.

Reacting to the notification, Tirupur Exporters' Association (TEA) president Dr. A Sakthivel said he was glad to note that the government has considered the long requisitions of the association to refund the state levies like electricity tax etc, fuel tax, etc.

“The rebate rate for cotton garments is 3.5 per cent, blended garments 2.65 per cent, and man-made fibre 2.65 per cent. The rebate cap is Rs 16.1, Rs 11.4 and Rs 11.6 respectively. This will increase competitiveness and helpful to enhance exports and also employment,” he said. (RKS)

Fibre2Fashion News Desk – India