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In what could be seen as a major relief for the textile industry, the Government has doubled the import duty on almost all forms of textile products ranging from fibre to apparel.
According to a notification issued by the Central Board of Indirect Taxes and Custom, there have been 45 changes and these include a change in specific rates as well as ad valorem rates. Though nothing has been said about the date from which the changes would be effective, it is believed that revised rates will come into effect from the date of gazette notification, which is July 16, 2018, as changes in indirect taxes come into effect immediately unless specified.
The import duty was earlier 10 per cent, which will now be 20 per cent. It means coats, pants, jackets, ladies garments, etc, will attract duty at the rate of 20 per cent. The same rate will be applicable on clothes made from jute or paper yarn, different varieties of carpets, laminated fibre and sheets made from fibre, etc. On some items, the rate would be 20 per cent or Rs 38 a metre, whichever is higher.
Ajay Sahay, Director-General, Federation of Indian Exporters’ Organisation (FIEO), said such a move would affect trade done on the normal tariff line. However, “imports from the least developed countries such as Bangladesh are unlikely to be affected,” he said.
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