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Textile & garment sector to benefit from new export policy
25 Mar '11
1 min read
The Ministry of Finance (MOF) made an announcement to the effect that, March 30, 2011 onwards the exporters would be entitled to permanent tax rebates in respect of their goods. The decision, amongst others, is looked upon to greatly benefit the textile, garment and many other industries.
With this decision, the tax-rebate system would be extended for all the exported items. The system was resumed on March 30, 2009 to aid the exporters to better survive the effects of the global economic slump.
Earlier in August 1983, it was decided to exclude the claims where the rebate amount was less than one percent of the FOB (free on board) prices of exported products, in view of the high administrative cost.
However, pursuant to the new provisions, March 30, 2011 onwards all the exporters would be entitled to rebates on their exports, irrespective of their value or share in the FOB prices of the items exported.
The move though would benefit the export of high-valued items, but the industries exporting goods produced while using low-cost import components and parts, like textiles and garments would be the biggest beneficiaries.
With this decision, the tax-rebate system would be extended for all the exported items. The system was resumed on March 30, 2009 to aid the exporters to better survive the effects of the global economic slump.
Earlier in August 1983, it was decided to exclude the claims where the rebate amount was less than one percent of the FOB (free on board) prices of exported products, in view of the high administrative cost.
However, pursuant to the new provisions, March 30, 2011 onwards all the exporters would be entitled to rebates on their exports, irrespective of their value or share in the FOB prices of the items exported.
The move though would benefit the export of high-valued items, but the industries exporting goods produced while using low-cost import components and parts, like textiles and garments would be the biggest beneficiaries.
Fibre2fashion News Desk - India
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