Home / Knowledge / News / Apparel/Garments / Proposed duty drawback cut will devastate us - apparel exporters
Proposed duty drawback cut will devastate us - apparel exporters
04
Aug '08
The proposed cut in duty draw back from 11 to 7 percent, which the Government is still mulling over, has met with severe criticisms from the Indian apparel export industry. A plea has been made by the apparel sector urging the Finance Ministry to block any further developments in this policy which is bound to bring devastating consequences across the country.

Duty drawback is essentially reimbursement to exporters of taxes paid on goods during the course of production. However, the situation is already getting grim as Rs300,000 million fetched by the apparel sector is expected to fall by 10 percent this year.

Apparel Export Promotion Council (AEPC) vehemently protested against accepting a cut in duty drawback on grounds that slashing 3 to 4 percent will have a fatal impact on the employment number of the apparel sector which is, even now, declining at an uncontrollable rate.

However, Government has taken this stance and counteracted on this issue in light of the fact that exporters have been misusing benefits granted by the center. It is therefore, keen on introducing an entirely new system to monitor the reimbursement of taxes in addition to reducing the duty drawback.

But, exporters who have already made commitments to clients at lower prices during August – December period and are finding themselves in a fix. Additionally, hike in cotton prices which have mounted by almost 20 percent in the last two months, have also left the industry grappling for respite.

Although, the Government did try easing inflationary pressure by allowing duty-free imports of cotton fibre, it has failed to pull down prices which soared by around 15 percent.

Even experts are of the opinion that if India is to stand firm in competition to Bangladesh, Cambodia, Vietnam, and Sri Lanka, it cannot afford to lose its market, which is quite likely if the duty drawback is reduced.

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search