Home / Knowledge / News / Apparel/Garments / Reduce excise duty on branded garments: ASSOCHAM
Reduce excise duty on branded garments: ASSOCHAM
12
Mar '12
Lead chamber the Associated Chambers of Commerce and Industry of India (ASSOCHAM) called for fiscal relief to the textile and clothing industry by reducing 10 per cent excise duty on branded garments to one per cent in line with 130 other items on which a similar levy was imposed in the previous Union Budget as a pre-cursor to the Goods and Services Tax (GST).

The Rs 1.5 lakh crore industry providing direct employment to 60 lakh people has witnessed lowering of growth by 25 to 30 per cent due to hike in excise duty, rising material and labour costs, and increase in interest rates.

“There has been a strong consumer resistance against increase in prices, resulting in a significant drop in demand, forcing retailers to resort to extended discounting and creating further stress on margins that are already under severe pressure,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a pre-Budget memorandum to the finance ministry.

Sampling costs should be considered as part of research and development expenses, and thus qualify for expenditure deduction under section 35(2AB) of the Income Tax Act. Besides companies, this deduction needs to be extended to partnership firms and sole proprietorships as well.

Due to growing consumer class, rising disposable incomes and arrival of international brands, the domestic market size is expected to reach Rs three lakh crore by 2017 with direct employment opportunities for more than 70 lakh workers.

ASSOCHAM said the domestic branded apparel industry has suffered badly due to ten per cent excise duty and – despite advancing and prolonging discount offers to offload existing stocks – continues with Rs 1,400 crore worth of inventory.

It said reducing the excise duty to one per cent will provide relief to the industry, pave way for rebuilding the growth sentiment and be in line with rollout of the GST.

Associated Chambers of Commerce and Industry of India (ASSOCHAM)

Must ReadView All

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Courtesy: IRRC Institute

Apparel/Garments | On 27th May 2017

Up to 7.5 mn retail jobs in US at risk due to automation

About 6-7.5 million retail jobs in the US are likely to be automated...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Lynda Kelly
Suominen Corporation

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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