Home / Knowledge / News / Apparel/Garments / Rajasthan RMG producers seek zero VAT
Rajasthan RMG producers seek zero VAT
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

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: EFI Reggiani

Textiles | On 6th Dec 2016

EFI Reggiani shows inkjet textile solutions at India ITME

EFI Reggiani, a leading technology provider of a full range of...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Robert Brunner

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search