Welcoming the announcement of the new Duty Drawback rates, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL), Dr K. V. Srinivasan, said that the revised rates will lead to increase in the exports of Cotton textiles.
The All Industry Rates of Duty Drawback re-imburses the incidence of duties of Customs on inputs and remnant Central Excise Duty on specified petroleum products used for generation of captive power for manufacture or processing of export goods. The Drawback rates for cotton textiles products such as Yarn, Fabrics, and Made-ups have been increased.
"There is a significant increase in the Drawback rates for cotton Made ups which will encourage export of value-added products like home textiles. Further, the removal of Drawback Caps in the case of those export products where the Drawback rates are less than 2 percent will benefit the Cotton textiles exporters," explained Srinivasan.
The Chairman, TEXPROCIL extended his thanks to Smriti Zubin Irani, Union Textiles Minister, for her support in getting the Drawback rates increased. He also thanked the Department of Revenue and the Drawback Committee headed by Dr G. K. Pillai for the increase in the rates.
K. V. Srinivasan urged the government to increase the MEIS rate for fabrics from 2 per cent to 4 per cent and also to cover cotton yarn under the MIES and 3 percent Interest Equalization Scheme so that exports of cotton textiles can achieve their true potential.
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