Decrease in duty drawback rates on garments might impact exports negatively: SIMA

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By admin January 14, 2019 20:10

Decrease in duty drawback rates on garments might impact exports negatively: SIMA

The Ministry of Commerce and Industry has increased duty 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. However, there is a marginal decrease in the duty drawback rates of apparel items. The ministry 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 has been demanding the government to announce enhanced duty drawback rates,” a release from Southern India Mills Association (SIMA) said. The government has announced the duty drawback rates applicable for the year 2018-19 on 6th December 2018.
He has stated that the increase would help the exporters to improve their competitiveness especially in the PTA countries. Yet another welcome feature of the announcement is the removal of value cap on most of the items which has been discouraging value addition. In the announcement, there is a marginal increase for several items of textiles and clothing products in the duty drawback rates.

admin
By admin January 14, 2019 20:10
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