Economy

Tax refunds to boost textile exports

Our Bureau | | Updated on: Mar 11, 2019
image caption

The textile industry expects exports to increase with the government extending refund of State and Central taxes on shipments of apparels and made-up goods.

The Cabinet, last week, approved the scheme to offer rebate on both the State and Central embedded taxes for the apparel and made-up goods such as towels, bed-sheets, blankets and curtains.

KV Srinivasan, Chairman, Cotton Textiles Export Promotion Council, said rebate will improve the competitiveness of made-up products in the export markets.

Compared to competing countries, export of made-ups, especially home textiles from India, was facing huge challenges due to high import duty. The scheme will go a long way in helping exporters in overcoming this disadvantage and increase exports, he added.

He urged the government to cover yarn and fabrics too under the tax refund scheme as these value-added products also face heavy tax incidences.

BK Goenka, Chairman, Welspun Group and President of Assocham, said the rebate will make exports of textiles truly zero rated, at a par with other countries. The decision to enhance the rebate on apparels and made-ups will give a fillip to these segments, which together account for 55 per cent of India’s total textiles export, he said.

Published on March 11, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you