India’s Textile Ministry asks to increase customs duty rebate by %

The Indian textile industry has submitted a proposal to the Cabinet, requesting an increase in the Ministry of Textiles’ tariff rebate by 2%.
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​​​​​​​​Although this incentive will violate World Trade Organization regulations, it will help protect the textile ministry’s competitiveness in the global market.
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The Ministry of Textiles of India contacted the Ministry of Finance at an early stage to request higher tariff rebates. However, the Ministry of Finance rejected this request and the reduction mechanism was used as a raw material product incentive. This was followed by the Textile Ministry’s recommendation to the Cabinet last month. Customs duty rebates moderately affect customs duties, central excise duty and service tax paid on exported products.
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The tariff refund is the privilege of the Ministry of Finance, and the Ministry of Finance has decided to reduce the tariff refund. The Ministry of Textiles took a different view and formally discussed the issue. The Ministry of Textiles has submitted an explanation to various ministries seeking comments.