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Govt urged to review the new tariff system
Jan '11
The garment traders have recently urged the government to review the July 2010 decision of levying a JD1 duty on every kilo of garments imported from other countries or five percent of its value, whichever is more.

This move of government has raised the import cost for garments and resultantly has also boosted the prices of garments in the domestic market, while the purchasing power of the buyers is waning with time.

Further, as a rise of at least 25 percent in the import costs has boosted the prices of products and has resulted in a steep fall in the demand, the dealers and retailers too are facing difficulties in selling their goods.

Prior to adoption of the prevailing tariff system, the custom officers used to work out the value of goods that were imported and then used to levy a 20 percent duty on that value. Now, the industry experts claim that, assessment under the new system of taxation always results in higher taxes.

Thus, while citing all their problems, the garment sector of the country has urged the Prime Minister to review the decision.

Fibre2fashion News Desk - India

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