Home / Knowledge / News / Apparel/Garments / Continue excise duty exemption on branded garments: CMAI
Continue excise duty exemption on branded garments: CMAI
30
Jun '14
The Clothing Manufacturers Association of India (CMAI) has urged the Indian Government to continue excise duty exemption on branded garments for the healthy growth of the organized sector.
 
In a representation sent to Union Finance Minister Arun Jaitley and Minister of State for Textiles Santosh Kumar Gangwar, CMAI president Rahul Mehta said if the Government brings back compulsory excise duty on branded garments, it will create disastrous impact on apparel industry and it will help grey market.
 
Mr. Mehta, who is also vice chairman of International Apparel Federation (IAF), said the definition of a “Brand” under Excise Laws includes any garment, which has a name, or logo, or symbol or any other identification mark on the product or package. Since all garments are sold with some label or the other, excise will be levied on all garments, and not merely on those meant for the rich and well-off, and urged the Textiles Ministry to take a firm stand on this issue and ensure that the move to bring back compulsory excise duty on branded garments is not implemented by the Government.
 
According to Mr. Mehta, 80 percent of the Indian apparel industry is still in the small scale sector, and imposition of excise duty would become a major deterrent to the survival and growth of the small manufacturers.
 
Whenever the Government has introduced excise duty on garments in the past, a shift to the grey market has been observed, with the Government losing out even on the other forms of taxes such as Income Tax, VAT, etc.
 
Nearly 50 percent of a brand’s annual sales are made at Discounted Rates, ranging from 30% to 70%. However, Excise Duty, which is levied at the time of dispatch from the Factory, is calculated on the full price. Therefore, the burden of excise on the consumer, is nearly twice than the intended levels, feels Mr. Mehta.
 
He argues that the current exemption from excise duty provides a huge incentive for many international brands to source their garments from Indian manufactures. But, this advantage will be wiped out once compulsory excise duty is introduced, as global apparel brands would prefer to import their requirements rather than manufacture in India.
 
The Indian clothing industry has moved to an investment phase after a hiatus of 3-4 years, and levying of excise duty would once again put a brake on such plans, the CMAI statement said. 
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Suresh Patel
Sidwin Fabric

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

Ritu Kumar
Label Ritu Kumar

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Sonam & Paras Modi
SVA

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

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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