Slash in preferential tax rates on imported textiles & garments
13 Dec '06
1 min read
Ministry of Finance is going to make changes in preferential tax rates by reducing the tariff on imported textile and garment products.
According to current regulations, special preferential tariff is only applicable to textile and apparel products imported from the EU, US and Australia.
Under WTO commitments, most favoured nations (MFN) principles will influence tariffs of products imported.
Tax rates on fibre products will be decreased by 5 to 20 percent, while the tax rate on fabric will be reduced to 12 percent and tax rates on ready-made clothes will be 20 percent.
With changes in tariff, domestic textile and garment industry will have to face challenges due to competition from imported goods.
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