The Hindu : Tamil Nadu News : Textile exporters want duty drawback rates increased

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Sunday, Aug 24, 2008
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Tamil Nadu

Tamil Nadu

Textile exporters want duty drawback rates increased

Staff Reporter

KARUR: The textile export industry here has urged the Centre to increase the duty drawback rates and remove service tax under all heads and sought interest subvention of four per cent till March 2010 to help the industry overcome the crisis.

In a memorandum to the Union Finance Minister, the Karur Textile Manufacturer Exporters’ Association has said the continued hardship it faces on various fronts has made the industry more vulnerable than ever before.

The memorandum, a copy of which was made available to the press here on Saturday, said the industry was the only segment in the manufacturing sector that was employing a large number of unskilled and semi-skilled workers displaced from agriculture.

During 2007-08, it suffered a lot; many units were closed down owing to the rupee appreciation. Then the Centre announced a relief package by the way of interest subvention. It was valid till March 2009. However, all of a sudden, the government announced that the interest subvention would cease to be effective from October 1. This, the association said, would hurt the industry most.

“We have come to know that some members of the committee for formulating the duty drawback rates recommended lower duty drawback rates, and this has come as a bolt from the blue,” said association secretary P. Gopalakrishnan.

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