New drawback rates a big dampner for exports: CII

Revised rates will come into effect from Sept 21

The announcement regarding new drawback rates, which are going to be effective from September 21, is a big dampener for India's exports, especially at this crucial time when we all are working towards increasing exports against all odds.

Sanjay Budhia, Chairman, CII National Committee on Exports and Imports, and Managing Director, Patton Group disclosed this in a statement that was issued here on Thursday.

The new rates which have been decreased by more than 20-30 per cent, will make it extremely difficult to export, Budhia added.

He said in the interest of reducing the current account deficit by enhancing exports, the government should reconsider reducing the rates.

The government rationalised the duty drawback and brought more items under the scheme for tax refund to exporters to give a boost to foreign shipments.

The revised all industry rates of duty drawback, which have been notified, will come into effect from September 21.