Home / Knowledge / News / Textiles / Abolish floating duty on cotton and raise duty drawback - Experts
Abolish floating duty on cotton and raise duty drawback - Experts
16
Mar '09
Experts from Development Research Center of the State Council suggest that the state should restore export tax rebate rate of textiles and garment to 17 percent and at the same time abolish floating-duty on cotton imports.

Experts analyze that overall international cotton prices have been higher than domestic prices since 2008 due to which imported cotton price is about 970 Yuan per ton higher then domestic cotton price after payment of floating-tax duty.

So, when an enterprise imports cotton, the cotton consumption cost of that company is 19-20 percent higher than surrounding countries, which affects international competitiveness of Chinese cotton spinning enterprises.

After abolishing the floating-duty, the state council could consider providing direct subsidies to cotton farmers, if at all international cotton prices dip below levels prevailing in the domestic cotton markets.

The sales tax recovered from the textile industry is 17 percent, but the state deducts only 13 percent tax for purchases like cotton, unclean wool, raw silk and hemp made by general enterprises, which is a disadvantage of 4 percent to textile enterprises.

Experts recommend the state should adopt the same policy of VAT tax deduction between textile enterprises and general corporate units and the deduction of input tax rate on the above-mentioned raw materials should be increased from 13 percent to 17 percent.

Experts also suggest some other measures for relaxing restrictions, such as loan guarantees, letters of credit, extension, and abolition of floating lending rate for textile enterprises, cancellation of increased fees and other discriminatory policies.

Fibre2fashion News Desk - China


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Paolo Ocleppo
Sandvik Hyperion

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth 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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search