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
Every market region has its own culture and trends
Maa Tex Speciality
‘We suggest reducing dosage of sizing chemicals to reduce sludge...
Indian fashion industry
Organic the first choice of any environment-conscious person
Groz-Beckert is the world's leading provider of industrial machine...
CADT Software & Drafting was founded in Spain in 1987 by Josep...
Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...
About one in every 20 patients picks up an infection while hospitalised....
Alexium International is a specialty chemical development company...
Robin Grankvist talks about PFCs, additives and various chemicals used in...
<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...
Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...
Tahweave & Garo
Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...