The export tax rebate of the Indian textile industry is nonsense

by:JIYALI     2021-08-08
India's tax rebate arrangement ended in July 2007, but the tax rebate arrangement did not stimulate the rapid development of the Indian textile industry. Last year's sales were 8.9 billion U.S. dollars, and by the end of this fiscal year, sales are expected to drop to approximately 8 billion U.S. dollars.   The domestic textile industry has not yet shaken off its predicament. On the other hand, competitors such as China, Bangladesh and Vietnam grew by 25%.   At the same time, the appreciation of the rupee in the past 12 months has had a negative impact on export companies. India has failed to keep up with the production standards and scale of competing countries.   A domestic organization commented that from a formal point of view, the tax rebate is nothing more than a cliché of thunder and rain, and its content is that the central government refunds the taxes collected to enterprises. The government should find a way for the state government to return the taxes collected to the enterprises.   The rupee appreciates by 14%, and most of the profits are eaten; the profit of the clothing industry is only 7%.   The textile organization put forward some suggestions, including short-term refund of taxes levied by local and state governments, so that loan interest can be in line with global standards. In the medium term, the textile industry must expand production, establish large-scale factories, improve technology, and reduce cost-effectiveness. The Technology Renewal Funding Arrangement (TUFS) provides partial subsidies and loans to inject capital into the textile industry. Textile companies should pay attention to technological transformation arrangements.  At the same time, the government must provide more incentives for SMEs to help them mature. The 8-9% interest rate should be reduced to 3%, in line with global interest rates.   However, it is believed that the VKrishnamurthy Committee established by the Prime Minister proposed to exempt all export companies from income tax, and the income tax exemption arrangement will expire in 2009.
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