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Tirupur exporters laud move to increase MEIS rate

The Tirupur Exporters Association (TEA) welcomed the government's move to enhance Merchandise Exports from Indian Scheme (MEIS) from 2 to 4 per cent. The association further requested the Centre to come up with a solution for the shortfall of 2.7 per cent incentives given to readymade garments and made ups post GST regime. Knitwear makers had raised concerns about cash crunch and deficit in government incentives post-GST as they felt recent developments had badly affected the industry.

They made several representations to the FM to clear the incentive deficit. Following this, the government increased Merchandise Exports from Indian Scheme from 2 per cent to 4 per cent for a seven months beginning November.

T R Vijayakumar, General Secretary of Tirupur Exporters Association says, the announcement has given much needed relief to the knitwear garment export sector. After the introduction of GST, government incentives given to the readymade garments took a different turn. Major incentives, including duty drawback, was drastically reduced. Total incentive rates were reduced to 8.7 per cent from 13.40 per cent and there is a deficit of 4.7 per cent. With the government's announcement of increasing the Merchandise Exports from Indian Scheme, the deficit has been reduced to 2.7 per cent, he added.

Association president Raja M Shanmugam has requested the government to incorporate the embedded tax and also announce revised remission of state levies (RoSL) and duty drawback rates, as government support was needed to enhance apparel exports.

 
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