Garments Exporters Association demands fiscal relief

21 Jan '13

7 min read

The special machinery intended to manufacture synthetic garments and also processing of fibres may as well be permitted to be imported under Zero Customs Duty so that more entrepreneurs make investment to manufacture synthetic garments, which has a major market globally.

6. Simplification of Administrative Procedures and Reduction of delays in Customs Clearance.

There is an urgent need to simplify administrative procedures to avoid delays at customs clearance of goods by improving loading and unloading of cargo and infrastructure at ports which quite often takes a heavy toll, causing losses to exporters for failing to adhere to strict time delivery schedule.

7. Realign Service Tax Rate

The Government has allowed all industry Service Tax rates at present 0.15 percent, which needs immediate re-alignment and fixation at 0.50 percent on the FOB Value of Exports, with the expansion of Service Tax to new services. This will be necessary to offset the Service Tax liability from the exporters, which is in keeping up with the policy of the Government to exempt Exporters from taxes, to avoid export of taxes as repeatedly reiterated by the Commerce Ministers from time to time.

8. Allocation of More Funds for TUF Scheme

Technology Upgradation Fund Scheme has been instrumental to improving the technology in textile and garment sector, providing it with necessary strength to offer textiles and garments of better quality at lower costs. The scheme needs to be strengthened by providing more funds to this Scheme by way of with enhanced allocation for the year 2013-2014 to encourage up-gradation of technology to continue increase production and improve productivity of the textile industry in more units.

9. Expedite Enactment and Operalisation of GST

The promised operationalisation of GST has been postponed year after year, which has only prolonged the sufferings of exporting community by way of continued payment of taxes, whose recovery has been an uphill task. This set of problems could be best taken care of by introduction of GST, which, despite the best efforts of the Government, has not seen the light of the day. It is high time to implement GST (Goods & Service Tax), to simplify the present tax structure.

10. Duty-free Import of Yarns and Fabric

A number of our competing economies have allowed their textile and garment factories duty-free import of yarn and fabric in order to reduce the cost of the final products for export purposes. The absence of such facilities to the textile and garment exporters renders our products costlier in international markets, and are therefore edged out of competition. The uniform duties of yarns would be compatible with the recently announced Fibre Policy of the Government of India.

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