Home / Knowledge / News / Apparel/Garments / Rajasthan RMG producers seek zero VAT
Rajasthan RMG producers seek zero VAT
28
Feb '11
The government, during the last budget had revised the VAT on the readymade garments (RMG) from four percent to 14 percent. Particularly, the VAT levy for Rajasthan was set to be the highest in comparison with other states of the country. This thus led to increased cost of domestic products in Rajasthan as compared to similar products in other states.

However, eventually owing to agitation by the traders, the government was compelled to reduce this levy to five percent, but then it still remained to be more than the VAT rate of four percent prevailing in other states, except for in UP, Punjab and Delhi which too were subjected to VAT of five percent.

Thus, the Rajasthan Readymade Garment Manufacturers' Association, by way of a representation has urged the state government to annul VAT imposition on domestically produced readymade garments , so as to ensure growth of RMG trade in the state.

The RMG manufacturers in the state are already in difficulty due to large scale inflow of the apparels in the state from countries like Taiwan, Indonesia, China and Thailand, with a rather more progressive RMG industry.

Meanwhile, the rising cost of production is also causing several production units in the state to shut down. Also the local RMG producers are now shifting their production base to other states with several governmental incentives for the RMG sector like in Gujarat, Haryana and Madhya Pradesh.

The RMG industry of Rajasthan which falls in the category of cottage and small industry, is the second biggest employment generating industry in the state, next to agriculture, and employs female rural workers in various jobs directly or indirectly linked with the sector.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search