COIMBATORE: The reduction in customs duty for specified textile machinery to 10 pct which is a step in the right direction has been welcomed by the Cotton Textile Export Promotion Council, the Texprocil Chairman, Mr B.K. Patodia said here on March 01.
The chairman also said the reduction in duty reduction falls short of the industry's request for the 5 pct concessional duty rate. However, contrary to the industry's request, the excise duty of 16 pct on textile machinery remains unchanged.
Further the imposition of additional duty of 4 pct on all imported goods and the peak rate of custom duty which is reduced from the current 15 pct to 12.5 pct will add in the benefits of reduction in custom duty.
Currently the exports of blended items such as polyester-cotton made-ups and fabrics of the country are being out priced by countries such as Pakistan, China, Indonesia, Thailand and Turkey.
The reduction in excise duty on all manmade fibers from 16 pct to 8 pct and the customs duty on manmade fibers, yarn etc and also on raw materials for manmade would give the much needed enhancement to exports of the country.