Tax refunds to boost textile exports

The textile industry expects exports to increase with the government extending refund of State and Central taxes on shipments of apparels and made-up goods.

The Cabinet approved the scheme to offer rebate on both the State and Central embedded taxes for the apparel and made-up goods such as towels, bed-sheets, blankets and curtains.

KV Srinivasan, Chairman, Cotton Textiles Export Promotion Council, said rebate will improve the competitiveness of made-up products in the export markets.

Compared to competing countries, export of made-ups, especially home textiles from India, was facing huge challenges due to high import duty. The scheme will go a long way in helping exporters in overcoming this disadvantage and increase exports, he added.