SRI LANKA TO GET 100% TAX CONCESSIONS
According to the existing Free Trade Agreement (CTC), India will provide Sri Lanka concession (concession) in light industry. India has decided to eliminate the currently in force annual limit of 1.5 million pieces of clothing for each imported category.
New Delhi also decided to provide 100% tax concession for the six million items of clothing that are allowed to be imported from Sri Lanka under an agreement on tariff quotas, signed by the two countries. Tariff concession for 6 million items of clothing also is 75%.
Officials from the Ministry of Textile Industry informed that the decision to impose additional concessions were made at the bilateral meeting in February this year. Department of Revenue will likely not receive warnings on concessions this week. Tariff concessions for an additional 2 million items of clothing will also be increased from 50% to 75%, added the official sources.
India has the concession to import 8 million garments annually from Sri Lanka under the tariff quota regulations, but additional concessions include the condition that the fabric for the apparel must be imported from India.
The decision to accept additional concessions will likely be no adverse impact on the domestic industry, as Sri Lanka has not been able to fully use the already existing quotas, according to fibre2fashion.
