Tirupur: Apparel industrialists are a worried lot as the central government has completely removed the Merchandise Exports from India Scheme (MEIS), an incentive scheme to promote exports, from this month. The incentives were almost halved since the implementation of GST.MEIS would provide duty credit scrip to compensate the duty paid by the exporters. It was challenged by the countries like the US at the World Trade Organization (WTO).
“We were told that the WTO was pressuring the central government that there should not be industry-specified incentives like MEIS. So, they have removed it. Without such support, survival of the apparel industry will be in question,” A Sakthivel, vice-chairman, Apparel Export Promotion Council, said. Before GST was implemented, the incentives were duty drawback, rebate on state levies, MEIS and concession on service tax.