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Wednesday, 1 February 2017

TEXTILE AND GARMENTS INDUSTRIALISTS EXPECT REDUCTION IN TAXES AND INTEREST RATES

They said that the interest rates in the competitor countries such as China and Vietnam are 5 per cent to 7 per cent. The government should reduce the interest rates for supporting the industry. "Textile and garment industry was severely hit by demonetisation leading several textile units to slash production by 20 per cent to 30 per cent. Industry participants said that the bank interest rates should be reduced to about 5 per cent from the current 12 per cent to 14 per cent. INDORE: Industrialists of Indore, the hub for textile mills and ready-made garments, expect reduction in taxes and interest rates in the upcoming budget 2017 to give a boost to the struggling industry.Madhya Pradesh Textiles Mills Association has demanded the government to put cotton and man-made fibre products in the lowest tax rate slab in the GST, which is expected to be implemented in coming months. The association has also demanded to reduce the excise duty on man-made fibre (MMF) to create a supportive business ecosystem in the state. According to the Madhya Pradesh Textiles Mills Association, the present rate of excise duty on MMF and its products is 12.5 per cent, which makes the products costly as compared to other textile products. Industry participants said that to increase the consumption of man-made fibre as per the National Fibre Policy, the excise duty on MMF and filaments should be reduced from the current 12.5 per cent to 6 per cent. The consumption of MMF in the country is only about 40 per cent as against 70 per cent in the global market.The industry is also demanding to withdraw the import duty on wool fibre as the woollen industry is completely dependent on imports. Rajesh Chardiya, an industrialist said, "The textile industry is labour intensive and requires high capital for running operations.

 

INDORE: Industrialists of Indore, the hub for textile mills and ready-made garments, expect reduction in taxes and interest rates in the upcoming budget 2017 to give a boost to the struggling industry.Madhya Pradesh Textiles Mills Association has demanded the government to put cotton and man-made fibre products in the lowest tax rate slab in the GST, which is expected to be implemented in coming months.The association has also demanded to reduce the excise duty on man-made fibre (MMF) to create a supportive business ecosystem in the state.According to the Madhya Pradesh Textiles Mills Association, the present rate of excise duty on MMF and its products is 12.5 per cent, which makes the products costly as compared to other textile products.Industry participants said that to increase the consumption of man-made fibre as per the National Fibre Policy, the excise duty on MMF and filaments should be reduced from the current 12.5 per cent to 6 per cent.The consumption of MMF in the country is only about 40 per cent as against 70 per cent in the global market.The industry is also demanding to withdraw the import duty on wool fibre as the woollen industry is completely dependent on imports.Rajesh Chardiya, an industrialist said, "The textile industry is labour intensive and requires high capital for running operations. The government should reduce the interest rates for supporting the industry."Textile and garment industry was severely hit by demonetisation leading several textile units to slash production by 20 per cent to 30 per cent.Industry participants said that the bank interest rates should be reduced to about 5 per cent from the current 12 per cent to 14 per cent. They said that the interest rates in the competitor countries such as China and Vietnam are 5 per cent to 7 per cent.

 

Source: Nyooz

    
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