AEPC chairman hails excise duty scrap on branded apparels

28 Feb '13

4 min read

1) Agriculture credit is available at 4% to farmers and for Handloom, the term loans is available at 6%. India’s garment exports, which constitute nearly 65% to 70%, cotton, cotton blend garments; they attract interest of around 9% to 11%. It is suggested that export credit may be given to RMG exporters at flat rate of 7%, as given in the past.

2) The investment allowance has been given for a project of Rs. 100 Cr and above. It is proposed that in order to encourage garment export sector, this limit should be brought down to the investment of Rs. 10 Cr. This will boost employment in a large number.

3) The modalities of commodity transaction tax are being worked-out. It is proposed that textile export should be exempted from such tax in order to remain competitive in the world market

Dr A Sakthivel, Chairman, AEPC appealed to the Hon’ble Finance Minister to accept the above proposal, which will lead to reduction in trade deficit, continue to give employment to over 11.22 million workers in the apparel sector alone and boost the confidence of entrepreneurs in this sector.

Apparel Export Promotion Council

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