Home / Knowledge / News / Apparel/Garments / Garment sector appeals to PM to roll back excise duty
Garment sector appeals to PM to roll back excise duty
17
Mar '16
The Karnataka Hosiery and Garment Association has appealed to the Prime Minister to withdraw excise duty on branded hosiery and garments and maintain status quo.

Finance Minister Arun Jaitley had proposed the excise duty on branded hosiery and garments in the Union Budget.

In a letter to the PM, the Chairman of the Taxation Committee of the Karnataka Hosiery and Garment Association, Sajjan Raj Mehta said the textile Industry of which hosiery and readymade is an integral part has been dealt a severe blow with the imposition of 2 per cent excise duty on branded products with MRP of Rs 1000 and above.

“We pray to you to urgently examine the matter and take up our humble request for removal of mandatory excise duty on products at the earliest and save the industry which has come to a standstill,” Mehta said in his letter.

Excise duty on readymade garments would both increase prices for consumers and put a burden on manufacturers.

"The 2 per cent duty will increase cost of garments by 5 to 6 per cent by the time they reach consumers. In many cases, manufacturers may start compromising with quality to keep retail prices below Rs 1,000 to avoid excise duty. This is likely to encourage un-organised readymade garments sector,” Mehta wrote.

He claimed that the common man's clothing need has been impacted by high inflationary trends in the last 15 months. The excise duty “tantamounts to robbing an Indian the right of affordable clothing”.

According to Mehta, the excise duty can potentially lead to change in the employment dynamics or shut down small manufacturing units which would result in mass unemployment.

“We would like to stress here that the apparel industry is one of the largest employers of women in the country. In the event of units closing down, many women stand to lose their means of livelihood,” he said.

Mehta also pointed out that while the domestic manufacturers have been levied with excise duty, global retailers in India do not have to bear any such additional burden. This shall result in a relative advantage for imported products as the Indian products keep becoming more and more expensive. This problem will be more severe in case of SAARC countries where duty free access has been granted. This would lead to domestic brands getting uncompetitive against imports from these countries especially the likes of Bangladesh, Sri Lanka, etc. and eventually result in the decline of the Indian industry.

He further said that with the GST likely to be rolled out this year, there was no logic for making the industry go through the travails of excise regime for a short period.

The Karnataka Hosiery and Garment Association's letter to the PM comes on the heels of the South India Garment Association (SIGA)'s request members of Parliament (MPs) from Bangalore to represent them and help save the garment industry.

It said the garment industry is passing through very rough weather and the levy of excise duty will further adversely impact the industry. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 23rd Aug 2017

US govt initiates Section 301 investigation of China

The US government has initiated an investigation of China under...

Apparel/Garments | On 23rd Aug 2017

BRC welcomes clarity on goods flow during Brexit

British Retail Consortium (BRC) has welcomed the greater clarity that ...

Textiles | On 23rd Aug 2017

Pakistan minister seeks ideas to boost textile sector

The Pakistani Government will come out with short- and long-term...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search