The Garments Exporters Association (GEA) on Tuesday lashed out at the government's recent decision to reduce the duty drawback rates and demanded restoration of at least the original rates.
It is only shocking that, the government has not just completely ignored the legitimate expectations and needs of the exporters for increasing duty drawback rates but has even further reduced the duty drawback, said GEA President, Rakesh Vaid in a press statement.
He pointed out that the government has also ignored the cost data submitted by apparel industry highlighting the justification for higher duty drawback rates both for knitted and woven garments.
The reduction in the duty drawback rates would have serious adverse consequences on the wafer-thin profits of exporters, he said, adding, they are already suffering from worldwide recession, low unit value realization from highly competitive overseas markets and steep hikes in cotton, yarn and fabric prices.
It would have adverse impact on the export potential of readymade garment sector, he reiterated.
keeping in view the present export scenario, the Garment Exporters were expecting the Government would increase the rates or at least maintain at the present level.
The GEA President urged the government to restore the duty drawback rates at least to the present level as there is no justification for reduction in rates, in view of sharp increase in duties announced in the last Budget proposals on most of the inputs and materials used by garment exporters.