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

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Tim Savage from Pexels

Textiles | On 19th Jun 2018

Da Lat begins construction of $50mn wool yarn factory

Da Lat Worsted Spinning Limited Company has begun construction of a...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search