India Substantially Reduces Export Tax Rebate Rate

　　 India exporters say that India's heavy export tax rebate rate has made them feel uneasy, which may have a negative impact on clothing, leather, handicrafts and metals industry.

India Exit The export rebate rate of garments, leather, metal handicrafts, carpets and certain products has been cut down, which will affect the employment of these industries, Sakthivel, President of Fieo, said.

Last Saturday, India's central consumption tax and Customs Administration (CBEC) cut the tax rebate rate (the import tax rate of raw materials for processing raw materials returned), and some products were cut by 30%.

Although India's exports grew by 28.6% in -8 months in April, some industries, such as clothing, Arts and Crafts Hand shake loom And carpet has just recovered from the global recession in 2008-09.

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, Premal Udani, 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%.

The rebate rate of stainless steel utensils and cutlery decreased from 12.5% to 8.8%.