The duty drawback has been increased from 1.2 per cent to 1.7 per cent for cotton yarn, from 1.3 per cent to 1.6 per cent for cotton fabric, and from 2 per cent to 2.6 per cent for made-ups.
The ministry of commerce and industry periodically reviews the duty drawback rates by mandating the Duty Drawback Committee and revises the rates so that all the central taxes are refunded so as to avoid export of taxes and have a level playing field in the global market.
“Consequent to the significant changes made in the tax structure after the implementation of GST, the textiles and clothing industry has been demanding the government to announce enhanced the duty drawback rates,” P Nataraj, chairman, The Southern India Mills Association (SIMA), said in a press release.
“The increase (in duty drawback rates) would help the exporters to improve their competitiveness especially in the countries with which India has preferential tariff agreements (PTAs). The removal of value cap on most of the items, which has been discouraging value addition, is another welcome feature of the announcement,” Nataraj added.
On marginal decrease in the duty drawback rates of apparel items, Nataraj said that considering the continuous fall in garment exports, the industry was hoping for increase in drawback rates. “The government could have at least continued the existing rates of duty drawback to sustain the existing level of garment exports. The reduction in drawback rates on garments might have negative impact on exports.”
He appealed the government to at least retain the existing rates, and added that it is essential to refund the embedded/blocked taxes and also the inverted duty to further improve the competitiveness of the country’s textile and clothing sector. (RKS)
Fibre2Fashion News Desk – India
Apparel/Garments | On 27th Jun 2022
China displaced the US to gain top position in terms of apparel...
Textiles | On 27th Jun 2022
Eurozone economic growth deteriorated sharply to a 16- month low in...
E-commerce | On 27th Jun 2022
ESW, a global direct-to-consumer (DTC) e-commerce company, has...
Textile Industry Head honchos
Biggest learning was adaptability
Liquidity is a primary issue in Indian context
Extension of RoSCTL to boost textile exports
Aditya Agrawal
<div style="text-align: justify;"><font face="Calibri,...
Meghna Kishore & Barkha Bhatnagar Das
Being conscious of living mindfully themselves, two sisters embarked on a...
Kerry Bannigan
Understanding fashion’s critical role towards a sustainable future for...
Suresh Patel Non Woven Federation of India
The Non Woven Federation of India (NWFI), representing the regional...
Franky Viaene Balta Group
Captiqs, the nonwovens brand of Balta, is a key European producer of...
Christopher Astley INDA
<font face="Arial, sans-serif"><span style="font-size: 16px;">INDA,...
Chun-Yuan Jean Label - C JEAN
C JEAN is an independent designer brand founded by Chun-Yuan Jean. C...
Eirinn Hayhow Label - Eirinn Hayhow
Eirinn Hayhow, founder of her eponymous label, is renowned for creating...
Archana Jaju Label Archana Jaju
<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...
Press Release
Letter to Editor
RSS Feed
Search Companies
editorial@fibre2fashion.com
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.
By submitting you confirm you have read our Terms & Conditions and Privacy Policy.