The government’s move to extend refund of state and central taxes on shipments of apparel and made-up goods has created a cloud nine aura in the textile industry. The industry now expects exports to grow in leaps and bounds.
The move came into effect when the Union Cabinet recently decided to approve the scheme that offers rebate on both state and central embedded taxes that were levied on apparels and made-up goods that include towels, bed-sheets, blankets and curtains.
TEXPROCIL chairman kV Srinivasan, welcomed the move and said in a media statement, the rebate will improve the competitiveness of made-up goods in the export market.
Till recently, high import duty was hurting the exporters badly and had engendered stiff competition barriers with the competing countries. This included export of made-ups and home textiles from India. Import duty for purchasing raw material for these goods was very high. Textile experts voiced their opinion that the new scheme by the government will be a boon to exporters and serve as a shot in the arm to the textile industry.
Srinivasan requested the government to cover yarn and fabrics too under the tax refund scheme. He was of the opinion that these value-added products also face stiff duty.