Traders Fear Duty Drawback Would Hit Kashmir Carpet Exports
Kashmir Chamber of Commerce and Industry (KCCI) has asked the Centre to review its decision to reduce duty drawback on export of carpets, saying that the industry is already under pressure due to economic slowdown and volatile situation in the Valley in the past three years.
"The KCCI feels concerned about the decision of Government of India for reducing duty drawback on export of carpets and the same should be reviewed," the trade body said in a statement here Saturday.
The carpet trade in Jammu and Kashmir was badly affected during the last 20 years in general and for the last three years in particular after economic recession, the KCCI said.
It said the carpet industry will not be in a position to bear the losses of Rs 65 crore on annual sales expected due to the latest decision of the Centre.
"During all these years in order to keep the carpet industry alive, the exporters offer major portion of the percentage, received from Government of India, to foreign buyers as discount just to keep the business running," the chamber said.
It said with the proposal of reducing this facility of duty drawback, there are apprehensions that this trade will undergo a heavy loss and thousands of artisans, manufacturers, traders and exporters will be badly affected.
According to the new order, duty drawback on low cost carpets has been reduced from 14.50 per cent to 10.20 per cent while the capping of high cost carpets has been reduced from Rs 2,570 to Rs 2,120.
The government order translates into 4.30 per cent loss to the industry on annual exports of low cost carpets and 17 per cent loss on annual export on high cost carpets, the statement added.
Source: kashmirdispatch.com
CAclubindia
