CIAE pre-budget memorandum seeks sops for apparel sector

13 Feb '06

2 min read

Tax holiday, removal of Fringe benefit tax (FBT), flexible labour and subsidies for apparel machinery imports are among other demands mentioned by in a pre-budget memorandum by the Confederation of Indian Apparel Exporters (CIAE).

It asked for introduction of a specific section in the Income Tax Act, 1961 granting a 50 percent tax deduction for profits from export of apparels with an additional 50 percent tax deduction, if such amount is transferred to a special reserve account, which can be utilized for acquisition of capital assets, research and market development till financial year 2014-2015.

Stressing on the sectors importance, the CIAE memorandum referred to apparel exporters providing employment to millions, and sought 100 percent exemption on export profits under section 80 HHC of the Income Tax Act, 1962.

Further, an exemption from registering with central excise for using transport services was also requested, besides calling upon the Government to encourage foreign investment within the apparel and textile sector and scrapping of obsolete and rigid labour laws.

Removal of 16 percent counterveiling customs duty (CVD) payable on the imported machines, and a 100 percent investment on capital under the TUF scheme be considered and not just on 50 percent of the total investment, conveyed the CIAE note.

GET LATEST UPDATE ON UNION BUDGET 2007-2008

More Confederation of Indian Apparel Exporters News... More Apparel/Garments News - India...