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

Apparel/Garments | On 30th Apr 2016

Britain keen on new ventures in textiles and garment

British High Commissioner to India Sir Dominic Asquith, has said that ...

Apparel/Garments | On 30th Apr 2016

‘India’s apparel sector needs to revisit policies’

Apparel Export Promotion Council (AEPC)’s Additional Secretary...

Textiles | On 30th Apr 2016

Bangladesh spinners wary of another gas price hike

Bangladeshi cotton spinners have expressed concern that they may lose ...

Interviews View All

Walter Roggenstein
Kelheim Fibres GmbH

What technological innovations are taking place in the specialty fibres...

Nitisha Kapur
Breakbounce Streetwear

How is the market for streetwear faring in India? Is the demand same as in ...

Kishan Kashiwala
Spinning King (India) Limited.

How has been the development in the area of fibres made from natural...

Mr Martin Kleinebrecht
Johns Manville

Martin Kleinebrecht (40) is the Marketing Leader of Nonwovens Europe at...

Paige Mullis
Glen Raven Inc

<i><b>Paige Mullis</b> discusses the expansion plans of Glen Raven Inc in...

Paolo Ocleppo
Sandvik Hyperion

<b><i>Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
April 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search