Business

SIMA hails hike in duty drawback

Written by PaperDabba

While welcoming the increase in the duty drawback rate, albeit marginally on cotton yarn, fabric and made-ups, the Southern India Mills Association has voiced concern over the marginal decrease in the duty drawback rate of apparel items.

“In view of the continuous fall in garment exports, the sector was hoping for an increase in the rate. The government could have at least let the existing rates to continue to help the sector sustain the business at the existing level. The reduction might have a negative impact on garment exports,” P Nataraj, Chairman, SIMA, said.

Yet another welcome feature is removal of value cap on most of the items, as it discouraged value addition, the SIMA chief said and reiterated the industry’s demand for refund of the embedded/blocked taxes and the inverted duty to improve competitiveness.

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