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Budget fails to address needs of textile sector
Hike of service tax from 10% to 12% to have adverse effects
Binny Sharma
New Delhi
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Photo: Vijay Pandey |
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ALREADY GOING through sluggish times since the last fiscal, the Indian textile industry — one of the pivotal manufacturing sectors — has little to rejoice post the announcement of budget 2012.
Industry players feel that while some marginal relief has been-provided in certain areas, this has been matched by negative provisions elsewhere.’
“The impact of increase of service tax from 10 to 12 per cent and inclusion of several additional services in the tax net would also have adverse effect on this industry. The industry had unanimously recommended to government to withdraw the excise duty on garments and madeups,” pointed DK Nair, secretary general, Confederation of Indian Textile Industry (CITI).
“The finance ministry has failed to address the expectations of the sector. Most of the issues related to the sector either remain unchanged or there is a marginal change in certain categories. Mill owners can benefit with the decision of continuation of optional excise regime for yarn and fabrics and removal of customs duty on shuttleless looms,” said DL Sharma, executive director, Vardhaman Mills.
Highlighted Rahul Mehta, President, Clothing Manufacturers Association of India that other than the change of duty rate on garments, there appear to be a few positives in terms of Import Duty Concession for Shuttle less Looms and further encouragement to Clusters.
The announcement of duty concessions for mills opting to modernise and a financial package of Rs 3,884 crore for waiver of loans for handloom weavers and their cooperative societies will certainly benefit the sector, feels the industry.
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