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SALEM: The tax on silk yarn imported from China will be reduced to 8% from the existing 30%. The National Textile Corporation would supply the yarn to weavers at a subsidised rate after importing it from China, Union minister of state for textiles EVK S Elangovan said.

The BJP government had hiked the tax on the imported silk from China to 30% from 8% and finance minister P Chidambaram had now agreed to roll back the tax to the old level, Mr Elangovan said, adding the National Textile Committee office at Salem, closed down by the previous government, would continue to function.