Apparel exporters to get tax back

The government has assured apparel exporters that the reimbursement of all duties and levies on exports, including apparel exports, would be fully addressed in the new duty neutralisation scheme being formulated to replace the Duty Entitlement Passbook Scheme .

"Taxes and levies on exports are refunded by countries all over the world and reimbursement is not a subsidy. We export our goods and services, not our taxes and levies," Commerce and Industry Minister Kamal Nath said in response to concerns expressed by the Apparel Export Promotion Council (AEPC).

In its presentation to the commerce minister, AEPC suggested enhancement of the coverage areas for determination of duty drawback, including the incidence of excise duty on consumption of diesel in garment export industry, refund of cess levied on cottonseed as well as cess on cotton consumed, and refund of sales tax, octroi, entry tax and water tax.