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 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Rupa Sood and Sharan Apparao
Nayaab

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

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search