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Tamil Nadu
Plea for higher duty drawback rate for cotton knitted garments
Our Bureau
Coimbatore
,
July 14
Knitwear exporters feel that the upward revision made in the duty drawback rate by the Centre for cotton knitted garments falls short of expected increase considering the higher transaction cost involved in exporting garments.
The Tirupur Exporters Association representing the knitwear exporters, has in a communication addressed to the Union Finance Minister, said that while it welcomed the increase from the present 6 per cent with a value cap of Rs 25 per piece to 6.7 per cent with a value cap of Rs 29, the revised rate is insufficient.
It said that after the Budget for 2006-07, the service tax which has been extended to more areas has also been increased. Even the Exim Bank survey 2003 had put the transaction costs expended by the exporters higher at 7-10 per cent.
While submitting the data sheets to the directorate of duty drawback, , the shippers had asked the former to increase the rate to 12.88 per cent. Considering the stiff competition in the export front, especially from China, the cotton knitted garment exporters should be given an increase in the drawback rate from 6.7 per cent to 9 per cent, the association said.
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