India'S Export Tax Rebate Rate Has A Negative Impact On The Garment Industry.

2010/9/27 9:59:00 54

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India exporters said

India

A sharp reduction in the export tax rebate rate makes them feel uneasy, which may have a negative impact on clothing, leather, handicrafts and metals industries.

Sakthivel, President of the India export organization (Fieo) alliance, said

clothing

The export rebate rate of leather, metal crafts, carpets and certain products has been cut down, which will affect the employment of these industries.

Last Saturday, India central consumption tax and Customs Administration (CBEC) reduced the tax rebate rate (raw materials for processing).

Import tariff

Return, and some products have been cut by 30%.

Although India's exports grew by 28.6% in the month of April, some industries, such as clothing, handicrafts, handlooms and carpets, have just recovered from the global recession of 2008-09 -8.

Exports of these labour intensive sectors are seriously affected by the fragile recovery of major market demand, such as the United States and the European Union.

Export tax rebates for cotton garments decreased from 8.8% to 7.7%.

The tax rebate rate for blended garments (including cotton / rayon) decreased from 9.8% to 8.6%.

The new tariff came into effect in September 20th.

In a letter to the Minister of finance, PremalUdani, chairman of the Export Promotion Committee, said that the recession of the ready made garment industry is far from over.

The industry has encountered unprecedented price increases in basic raw materials, such as raw cotton, cotton yarn and fabrics.

Shrinking exports mean loss of job opportunities.

Tax rebates in other sectors were also downgraded.

Leather and leather products rebate rate down 5-15%.

Bicycles and sporting goods have been cut by 9-20% and steel products have been lowered by 25-30%.

Stainless steel utensils and tableware, the rate of tax rebate reduced from 12.5% to 8.8%.