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Do away with taxes on zero duty clothing exports, FBCCI urges India
Jul '09
Mr Annisul Huq, President, FBCCI
Mr Annisul Huq, President, FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has requested the Government of India to remove certain taxes like the Value Added Tax imposed on duty free garment exports.

Under a MoU signed between India and Bangladesh under the South Asian Free Trade Agreement (SAFTA) in 2007, Bangladesh can export eight million pieces of clothing to India, duty free.

The President of FBCCI, Mr Annisul Huq said though exports of garments to India were attracting zero duty, the additional taxes like VAT, educational cess, etc were hampering the spirit of free trade.

He added by saying that though there was a provision to export eight million pieces of garments under the treaty, but since they attracted taxes amounting to nearly 18 percent, the volume of exports was very small.

Fibre2fashion News Desk - India

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