The Apparel Export Promotion Council (AEPC), official body of apparel exporters in India, discussed issues of refunding of the embedded tax ranging from 4-5 per cent on the industry.
The issue was raised by AEPC vice-chairman of the council, A Sakthivel during meeting with union textiles minister Smriti Irani at her office in New Delhi on May 21.
The AEPC feels that refunding would help to bridge the gap between reduced drawback and rebate on state levies.
In view of duty free status to competitive countries, AEPC also urged minister to discuss the Free Trade Agreement issue with the commerce ministry for further growth of exports.
Sakthivel on behalf of the apparel industry thanked Irani for her support and efforts to revive the industry.
Recently, textile bodies such as AEPC and Tirupur Exporter’s Association (TEA) thanked government for extending Merchandise Exports from India Scheme (MEIS) for garments and made ups beyond June 2018 by the Ministry of Commerce and Industry.
The MEIS extension, a breather at the time when the industry is reeling through a tough period, will help industry to restore the competitiveness of exports and increase its share in the world market.
Notably, the Government of India introduced MEIS under the Foreign Trade Policy (FTP) 2015-20, effective April 1, 2015. It seeks to promote export of notified goods manufactured/ produced in the country.
