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FM urged to increase duty draw back rate by 3 pc
December, 15th 2007
Tirupur Exporters Association (TEA) on Friday requested Union Finance Minister P Chidambaram to increase the duty drawback rate by another three per cent, so as to "sustain" in the global market and use the units' capacity fully.

In a letter to Chidambaram, a copy of which was released to the media, TEA president A Shaktivel thanked him for revising upwards the duty drawback rates by one per cent for cotton knitwear products at a time when export was continuously facing a declining trend and showing a dismal performance due to unprecedented appreciation of rupee against the dollar.

Shaktivel requested the minister to consider that hedging cost should be compensated or dual exchange rate should be considered and to fix the value of rupee against dollar at rs 42 for one year for the exporters.

The exporters should be exempted from payment of service tax on all services and Fringe Benefit Tax, he said.

Tirupur Knitwear exporters were making efforts to produce value added garments and exploring new markets and conducting lot of seminars with various Banks to make exporters familiar with the hedging mechanism for using such tools to protect themselves from the currency fluctuation, he said.
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