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Ludhiana MP pleads for removal of excise duty on RMG
20 Sep '11
2 min read
Manish Tewari, Ludhiana Member of Parliament and National level Spokesperson of the Congress Party, has urged the Centre to remove the recently imposed excise duty on readymade garments (RMG).
In a letter forwarded to Union Commerce Minister Anand Sharma, he stated that the duty was rolled back in 2004 owing to intervention by the Congress President Sonia Gandhi. He said the Congress President had voiced her concern regarding the adversities that the textile garment producers faced due to the Central Excise Duty imposed by the earlier BJP-led NDA Government.
Mr. Tewari said post-imposition of the new Central Excise Duty regime around six months back, several representations have been made to him by garment producers from Ludhiana as well as by representatives from many garment producing centres across the country. They have explained him regarding the troubles faced by the small and micro level garment enterprises due to obligatory duty imposition.
He further said that he is quite sure that many of the garment producers would have even approached the Minister to update him regarding their situation and the problems that they face.
He suggested that if the Finance Minister still wants to continue with the duty imposition, the burden may be shifted on yarn producers, who can pass it on to their buyers and deposit the same in the Government treasury.
Doing so, the Congress party representative said, the Government could continue to receive the revenue, for which the optional tax was converted into a compulsory one, and would at the same time save a large number of small garment manufacturers from the troubles of a harsh tax collection mechanism.
Prior to taking any final decision on the subject, the yarn producers may be consulted in this regard, however, from informal talks with some of the yarn producers, it seems they may not be hesitant to accept such a proposal, Mr. Tewari added.
In a letter forwarded to Union Commerce Minister Anand Sharma, he stated that the duty was rolled back in 2004 owing to intervention by the Congress President Sonia Gandhi. He said the Congress President had voiced her concern regarding the adversities that the textile garment producers faced due to the Central Excise Duty imposed by the earlier BJP-led NDA Government.
Mr. Tewari said post-imposition of the new Central Excise Duty regime around six months back, several representations have been made to him by garment producers from Ludhiana as well as by representatives from many garment producing centres across the country. They have explained him regarding the troubles faced by the small and micro level garment enterprises due to obligatory duty imposition.
He further said that he is quite sure that many of the garment producers would have even approached the Minister to update him regarding their situation and the problems that they face.
He suggested that if the Finance Minister still wants to continue with the duty imposition, the burden may be shifted on yarn producers, who can pass it on to their buyers and deposit the same in the Government treasury.
Doing so, the Congress party representative said, the Government could continue to receive the revenue, for which the optional tax was converted into a compulsory one, and would at the same time save a large number of small garment manufacturers from the troubles of a harsh tax collection mechanism.
Prior to taking any final decision on the subject, the yarn producers may be consulted in this regard, however, from informal talks with some of the yarn producers, it seems they may not be hesitant to accept such a proposal, Mr. Tewari added.
Fibre2fashion News Desk - India
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