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

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harmeet Singh

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

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

Urs Stalder
Sanitized AG

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search