Duty drawback hiked for 102 items to boost exports
New Delhi: In a major relief to exporters, the government on Thursday raised duty drawback rates on 102 items which will make Indian exports more competitive in the global market.
As a step towards more efficient Input Tax Neutralization on exports, after considering various representations from the trade and industry, the government has enhanced the all industry rates of duty drawback for 102 tariff items, a finance ministry statement said.
The export items mainly include marine and seafood products, automobile tyres and bicycle tyres/tubes, leather and articles of leather, yarn and fabric of wool, glass handicrafts and bicycles, it said.
“It is a welcome move. This would provide some competitiveness to Indian exporters in global market,” the Federation of Indian Export Organisations (FIEO) director-general Ajay Sahai told PTI. He said duty drawback by and large has been enhanced in most of the items except for chemical items where there is some reduction.
The statement said the “revised rates of duty drawback will help address the concerns of these export sectors and make India's exports more competitive in the global economy”.
The enhanced rates of duty drawback will be effective from January 25, it said. The revision of duty drawback is a welcome relief to the exporters and their cash flow should improve, which had been adversely impacted because of delayed refunds and increased input cost in GST, Bipin Sapra, Tax Partner, EY India said.