Garment imports likely to become five to 6 per cent cheaper than locally made apparel despite the goods and services tax providing input credits to the textile industry due to removal of the special additional duty (SAD), as GST subsumes all taxes including protections. Apparel imports are subject to a countervailing duty (CVD) of six per cent on cotton and 12.5 per cent on polyester, which importers receive as a central value added tax credit. The CVD is optional at a flat 2 per cent if the importer does not claim a set-off against input costs.

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