Import of cotton has been absolutely exempted from customs duties until September 30, 2022, a transfer which can profit the textile business and decrease costs for customers, the Ministry of Finance on Wednesday stated in a notification.
“This notification shall come into impact on the 14th April, 2022, and can stay in power as much as and inclusive of the thirtieth September, 2022,” the federal government stated within the notification.
This exemption would profit the textile chain- yarn, cloth, clothes and made ups and supply reduction to customers, the ministry famous.
Beforehand, the import of cotton attracted a 5 per cent primary customs obligation and one other 5 per cent agriculture infrastructure improvement cess (AIDC).
The business has been demanding waiver of obligation to decrease home costs.
The Central Board of Oblique Taxes and Customs (CBIC) notified the exemption from customs obligation and agriculture infrastructure improvement cess for import of cotton.
Since final 12 months, the cotton business was urging the federal government to withdraw each the fundamental customs obligation and the AIDC levied on cotton to create a degree enjoying discipline on the uncooked materials entrance for the Indian textile and clothes Trade.
India usually imports solely extra-long staples, natural and sustainable cotton, however the removing of import obligation will even result in extra import of medium and short-staple cotton.