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Customs duty on polyester fabric raised to 20%

In the GST regime, countervailing duty has been replaced with Integrated GST and Special Additional Duty has been scrapped

T E Narasimhan  |  Chennai 

Photo: Shutterstock
Photo: Shutterstock

The has decided to increase the basic on to 20 per cent, from 10 per cent, with effect from last Friday.

In the Goods and Services Tax regime, countervailing duty has been replaced with Integrated and Special Additional Duty (SAD) has been scrapped. attracted 10 per cent basic customs duty, 12.5 per cent countervailing duty and four per cent SAD in the pre-regime.

After scrapping of the SAD and levy of five per cent on the fabric, the imported variety attracted 10 per cent basic and five per cent This was a significant drop and the domestic manufacturing industry had petitioned in alarm, to stop cheaper import, especially from China. The industry had represented to the government and the Council to increase the basic

Customs duty on polyester fabric raised to 20%
P Nataraj, chairman, The Southern India Mills’ Association said the price of man-made fibre in India was higher by 20-30 per cent, due to high incidence of duties and levies, than abroad. So, there was a threat from import. He added there was also a need to increase the import duty on cotton fabric, at par with polyester fabric, in the interest of the power loom and handloom sectors.

First Published: Tue, October 31 2017. 02:07 IST
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