Government urged to reconsider duty drawback rate

The government urged to reconsider the decision to reduce the duty drawback to knitwear export sector from 7.6 to two percent as it would hit hard the garment sector in neighbouring Tirupur export garment sector said , Tirupur Exporters Association president Raja M Shanmugham.

It has come as a rude shock to exporters, who are already facing severe competition in the global market, he said and appealed to the government to have a re-look at the issue.

He further said that if buyers look to go out of the country due to higher prices it would be very difficult to bring them back, since they would stick to competitor countries like Bangladesh, Sri Lanka, Cambodia and Vietnam.

He also expressed apprehension that this may lead to more job losses, since 80 percent of the garment units fell under the MSME category.

Meanwhile, Southern India Mills Association chairman P Nataraj in a statement, appealed to the Finance Ministry to have a re-look at the rates applicable for textiles stating that this move was not in tune with the earlier announcement of the government about boosting exports and job creation.

Also the Ministry should take steps to refund all the blocked, embedded taxes, levies and accumulated input tax credit on fabric especially, processed fabric and announce a positive package.

Recent Posts

Swisstulle advances dyeing efficiency with JigMaster

Swisstulle adopted JigMaster for its dyeing and finishing operations, especially for high-quality technical textiles used in fashion and automotive industries.

3 days ago

Birla Cellulose and Circ partner to scale textile recycling

Birla Cellulose, a leader under the Aditya Birla Group, has announced a long-term partnership with Circ, a U.S.-based textile recycling…

3 days ago

CARBIOS unveils enzymatically recycled polyester t-shirt

CARBIOS has collaborated with leading brands Patagonia, PUMA, Salomon etc. to create a groundbreaking polyester garment made entirely from textile…

3 days ago

Yangi launches sustainable fiber-based food tray

Yangi, renowned for its renewable packaging solutions, has launched a fiber-based food tray as a sustainable alternative to plastic trays…

3 days ago

Tarpaulife Project develops alternative to PVC-coated fabrics

The European Tarpaulife Project is working on polyolefin-coated fabrics, such as polyethylene, that can be manufactured to compete with PVC-coated…

3 days ago

Better Cotton to standardise measurements for cotton production

Better Cotton has joined the global non-profit alliance, Cascale, in a three-year project aimed at standardising LCA methods across the…

3 days ago