GEA demands a special package for garment exporters

12 Mar '12

3 min read

As the international market, which was already highly competitive, has further become tougher Mr Rakesh Vaid, President, Garments Exporters Association has requested the Government to reduce the transaction cost of exporters and grant necessary fiscal and commercial relief for the garment sector of the textile industry to enable it to face increasing international competition.

Mr Vaid has also stressed the need to provide a special package of incentives to garment exporters, who are facing the cold chill of international competition because of uncertain global outlook.

Mr Vaid expressed the hope that the Finance Minister would favourably consider the following GEA recommendations while finalizing Budget proposals to enhance the competitive strength of the labour intensive Indian Apparel Export Industry:-

• To reduce the transaction cost and grant necessary fiscal and commercial relief for the garment sector of the Textile Industry to enable it to face increasing international competition because of shrinking demand in the major world apparel markets.

• To provide adequate and need-based funds to exporters at reasonable rates of interest which should not exceed 7 per cent as applicable to agriculture sector and restore 2 per cent interest rate subvention on export credit to all garments exporters irrespective of their turnover and scale of operation covering all units in small, medium and large category.

• To hike duty drawback rates by 5 per cent by increasing the scope and coverage of duty drawback scheme so as to ensure full reimbursement of excise duties, custom duties, education cess and various state level taxes.

• To restore 100% exemption to export earnings under Section 80 HHC of Income Tax Act to boast the efforts being made by exporters to overcome the present serious crisis.

• To encourage captive power generation by providing diesel at International prices and exempted from Excise Duty and Local Levies.

• To abolish the Custom duty on import of textiles machinery, accessories and fabrics allowing free import at nil rate.

• To simplify administrative procedures to avoid delays at customs clearance of goods by improving loading and unloading of cargo and infrastructure at ports.

• To revise upward the all industry Service Tax rates from the present 0.15 percent to 0.50 percent on the FOB Value of Exports.

• To extend the Restructured Technology Upgradation Fund Scheme with enhanced allocation for the year 2012-2013 to encourage up-gradation of technology with modernized equipments to increase production and improve productivity of the textile industry.

• To implement GST (Goods & Service Tax), to simplify the present tax structure, at the earliest.

Garments Exporters Association (GEA)

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