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Shri Ashok G Rajani, Chairman AEPC welcomed the Union Budget 2016-17 and termed it- balanced, growth oriented and forward looking. The thrust on boosting the manufacturing, skill led employment and infrastructure will surely provide boost to the garment industry. Chairman AEPC in reaction to the Budget 2016-17, stated that, Addition of 1% FOB value of exports in custom duty free for specified fabrics would enable garment exporters to undertake production of those garments where they were not competitive. In the year 2016-17, fabrics worth around Rs. 1000 crores (1% of Rs. 1 lakh crore) would be eligible for imports and custom duty of Rs. 110 crores, would be saved by garment exporters. This will give avenues for new product development. It would provide additional exports of Rs. 2500 crores in a complete year. Shri Rajani further said, Continuation of duty free import of trimmings and embellishments to the extent of 5% of FOB would give additional garment export of Rs. 5000 Cr in full year (2016-17). The benefit of Notification No. 41/2012 is now effective from 1.7.2012. Here the Govt. has changed the post manufacturing drawback rate from 0.18% to 0.21%. Exporters shall be able to take the benefit of this notification from 1.7.2012. This is subject to the passing of Finance Bill. The effect of this would be additional 0.03% drawback on service tax on garment exports on FOB value of exports. The total additional exports- Rs. 7500 Cr in full year 2016-17 is envisaged by the incentives announced in this budget, he added. Powered by Capital Market - Live News
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