Centre increases drawback rates of Kashmiri carpets

Srinagar, July 15 (UNI) The Centre has increased drawback rates of hand-knotted woollen and silken Kashmiri carpets, a business body said today.

The Kashmir Chamber of Commerce and Industry (KCCI) said the new drawback rate for hand-knotted woollen carpets is 12.5 per cent with a cap of Rs 700 per sq mt.

For silk carpets, the rate is 15.5 per cent with a cap of Rs 2750 per sq mt as against the existing rate of 11.8 per cent with a cap of Rs 1600 per sq mt, it added.

The new drawback rates were effective from April one, 2007.

The KCCI said the Centre has decided to increase drawback rate and reduce the rate of interest on packing credit as well as post-shipment to take care of Rupee appreciation, the details of which were awaited.

The Chamber said it was making all efforts and had been repeatedly urging the Jammu and Kashmir government to bring the carpets under zero per cent value added tax.

UNI