Budget Expectations of Textile Industry

Budget Expectations of Textile Industry

Reduction in excise duty on man-made staple fibres of Chapter 55 and filament yarns of Chapter 54. Interest rates to be capped at 7% for exporters. Expansion of interest subvention scheme to the entire MMF textiles sector. Best FTA treatment to SEZ units. Special Additional Duty (SAD) on MMF. 4% SAD on all man-made fibres should be abolished.

For synthetics industry:

  • Reduction in excise duty on man-made staple fibres of Chapter 55 and filament yarns of Chapter 54.
  • Interest rates to be capped at 7% for exporters.
  • Expansion of interest subvention scheme to the entire MMF textiles sector.
  • Best FTA treatment to SEZ units.
  • Special Additional Duty (SAD) on MMF. 4% SAD on all man-made fibres should be abolished.
  • Central excise registration for merchant exporters.
  • Reduction in the rate of service tax. Service tax rate has been increased to 12.36%, which is too high.
  • To reduce power costs because, in Western India, power costs have gone up substantially.
  • The infrastructure at ports has to be improved to take care of growing export volume. Logistic part has to be addressed.
  • The Marketing Assistance available under the MDA/MAI scheme to the Councils to be enhanced further.
  • Integrated textile policy is the need of the hour.
  • Liquidate CENVAT balances, since the MMF textile processing industry has accumulated CENVAT balances, because of an inverted duty structure.
  • Other than timely disbursement of Technology Upgradation Fund Scheme (TUFs) payment, promotional schemes like focus markets to reach out to untapped overseas countries are a MUST
  • Streamline scattered textile production chain.
  • Reduce basic custom duty on PTA, MEG, PSF, POY and also textile machinery and SAD on all of these to be lowered from 4% to 0%.

For cotton industry:

  • Integrated textile policy is the need of the hour.
  • The government should review the draft recommendations of the Ajay Shankar committee.
  • Create a level-playing field for all the sectors in the global environment.
  • The new policy should be in line with the present era of development, should not be sectoral, but quite comprehensive.
  • Issues related to TUFS will have to be addressed immediately.
  • The government should also launch the much-awaited National Fibre Policy.
  • Restrict cotton export and allow duty-free import of cotton.
  • Do not allow cotton yarn export, except counts of 60s & above.
  • Stop duty drawback facility on cotton yarn export.

For garments industry:

  • Continue excise duty exemption on branded garments.
  • The government should consider the definition of a ?Brand? under excise laws.
  • Excise will be levied on all garments and not only on the high-end brands.
CATEGORIES
TAGS
Share This

COMMENTS

Wordpress (0)
Disqus ( )

Hi There!

Now get regular updates from ITJ Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Textile News on Whatsapp! Enjoy

+91 81082 88300

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back