Coimbatore, Oct 29 (PTI) Southern India Mills Association(SIMA) today thanked the Union finance and textile ministersand GST council for increasing the basic Customs duty onimported polyester fabrics from 10 per cent to 20 per cent.
Since man-made fibre price in India cost 20 to 30 percent more due to high incidence of duties and levies, therewas a threat of cheaper imports especially from countries likeChina, SIMA chairman P Natarajan said in a statement.
The increase in basic Customs duty would reduce imports,he said adding that there was a need to increase the importduty on cotton fabric also on par with polyester fabric in theinterest of powerloom and handloom sectors to sustain theircompetitiveness.
Consequent to the scrapping of four per cent additionalduty and levy of five per cent of GST on polyester fabric, theimported polyester fabric attracted 10 per cent basic Customsduty and five per cent IGST.
Therefore, there was a significant drop in the importduty threatening the survival of the domestic manufacturingindustry due to cheaper imports especially from countries likeChina.
Thus, the industry had represented to the Centre and theGST Council to increase the basic Customs duty on fabrics toretain the competitiveness of the domestic manufacturingindustry, Natarajan said. PTI NVMSS.
This is unedited, unformatted feed from the Press Trust of India wire.