New textile relief package likely to reduce tariffs

24 Feb '07

1 min read

Ministry of Textile Industry plans to announce a relief package for boosting exports and to raise the sector's global competitiveness. Package will provide subsidy or rebate for textile sector to uphold interests of stakeholders.

Stakeholders are requested to give suggestions for a zero-rated package considering factors which impede textile exports directly or indirectly, so that cost of doing business can be slashed and exports upturned.

Spinners, RMG producers, apparel and hosiery manufacturers, ginners and other stakeholders are facing stiff competition from Chinese, Indian and Bangladeshi products.

It is expected that 0.75-1.25 percent income tax, 0.25 percent Export Development Fund (EDF) and 0.25 percent withholding tax could be eliminated under the zero-rated package.

Stakeholders' proposals will be sent to concerned ministries for evaluation. Ministry of Textile Industry will prepare a summary taking into consideration proposals and ministries' comments, which will be forwarded for approval to the Prime Minister.

Direct or indirect provision of a zero-rated package to the industry could surge exports to US $20 billion in coming three years. Package will be declared by end of current financial year.

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