Positive duty drawback in textiles hailed by TEXPROCIL
18 Jul '06
2 min read
Government's decision to positively revise exports duty in textiles has been welcome by The Cotton Textiles Export Promotion Council (TEXPROCIL), the Non-profit international marketing organization for local manufacturers of cotton yarns, fabrics etc.
Chairman of TEXPROCIL, B K Patodia, termed it as a move which would help the exporters to remain competitive in the international market. It would also help the government in reaching its export target for 2006-2007 as well.
Rate has been put at 4 percent in place of 3.5 percent for the cotton textiles having a value cap of Rs8 per Kg, whereas in case of dyed yarn it has been hiked to 4.5 percent in place of 4 percent with value cap of Rs13.30 Kg.
Duty has been raised to 4.7 from 4 percent for the cotton fabrics (grey) and from 6 to 7.8 percent for dyed fabric with their value cap at Rs20.40 and Rs26 per kg.
Rate has been revised from 5 to 6.8 percent for cotton yarns of count 60 or above and from 6 to 7.8 percent in case of dyed yarn with the value cap placed at Rs20.40 and Rs26 per kg.
Export duty has been increased commodities made of cotton from 5 to 6.4 percent with value cap of Rs64 per kg. These commodities include bed, toilet, table, kitchen and curtains linens.
Patodia welcome the decision of cotton bags being included in the Chapter 42 by the department of revenue. He said that it would help sort out classification issues.
It will be subject to the same rate as applicable to cotton commodities.
marketing@alchempro.com
