New Delhi [India]- The Government has decided to exempt all customs duty on the import of cotton in order to provide relief to the textiles industry, the Ministry of Textiles said on Thursday.
“This exemption would benefit the textile chain-yarn, fabric, garments and made-ups and provide relief to the textile industry and consumers,” the ministry said in a statement.
The Central Board of Indirect Taxes and Customs (CBIC) has notified the exemption from Customs duty and Agriculture Infrastructure development Cess for import of cotton.
This notification shall come into effect from April 14, 2022 and will remain in force up to and inclusive of September 30, 2022.
“Removal of import duty on raw cotton should have salutary effect on cotton price in India,” the ministry said.
The government’s action came after the industry’s demands for the removal of 5 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure and Development Cess (AIDC) on raw cotton.(ANI)