In a massive relief to Indian exporters, the government has raised the all industry rates of duty drawback on 102 export items. Besides, the finance ministry noted that as a step towards more efficient input tax neutralisation on exports, after considering various representations from trade and industry, the government has enhanced the duty drawback rates.
The ministry has pointed out that the move will help address the concerns of these export sectors and make country’s exports more competitive in global market. It indicated that the export items that will now enjoy a higher duty drawback 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 added that the enhanced rates of duty drawback will be effective from January 25.
Commenting on the move, the Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that it is a welcome move and this would provide some competitiveness to Indian exporters in global market. He also said that duty drawback by and large has been enhanced in most of the items except for chemical items where there is some reduction.