Home / Knowledge / News / Apparel/Garments / AEPC Chairman derides excise duty on branded clothing
AEPC Chairman derides excise duty on branded clothing
Mar '11
Mr Premal Udani
Mr Premal Udani
The branded clothing sector got a jolt on February 28, 2011. They were hit by an unexpected whammy from the Finance Minister - Mr Mukerjee, who proposed a mandatory 10% excise duty on branded clothing.

Clothing producers across Indian are agitated by the decision of the Finance Minister. A huge rally has even been proposed by the Gujarat Garment Manufacturers Association (GGMA) today in Ahmedabad to protest against the levy.

Mr Premal Udani, Chairman - Apparel Export Promotion Council (AEPC) while speaking exclusively to fibre2fashion, too was highly critical of the proposal. AEPC represents around 7,500 clothing exporters from India.

He said, “Overall budget is good but there is not much for the textile sector. There have been slight reductions in duties of technical yarns and some inputs, but they are very symbolic. 2.5% reduction is not really going to make a big difference, but is still a welcome step”.

“However imposing mandatory excise duty on branded apparel is the biggest negative. Many may not be aware that, earlier too, the government sought to impose these duties, but withdrew because of procedural problems”, he informed.

He added, “Garment manufacturing is not a normal production activity, as it is not straight-line production. There are too many processes involved which necessitates, raw materials being sent out of factory gates at various times.

“So it is not possible to keep an accurate check and moreover exports in any case is exempt under the current rule, but we still have to go for registration of units and maintain records, which will in itself, become a big problem”.

“The government should have actually called a meeting of all stakeholders and discussed the feasibility of proposing this levy. We have appealed to the honorable finance minister to withdraw the duty with immediate effect”, he concluded by saying.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Bangladesh Bank

Apparel/Garments | On 22nd May 2018

Bangladesh Bank enhances EDF loan limit to $25 million

Bangladesh Bank has enhanced the loan limit under Export Development...

Sri Lanka's textile imports up 32.5% in February 2018

Textiles | On 22nd May 2018

Sri Lanka's textile imports up 32.5% in February 2018

In what might be an indication of higher exports in the coming...

Provide power at Rs 8/kWh to textile units: APTMA

Textiles | On 22nd May 2018

Provide power at Rs 8/kWh to textile units: APTMA

All Pakistan Textile Mills Association (APTMA) has asked the...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Harmeet Singh

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

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Giorgio Mantovani
Corman S.p.A

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Aditi Somani
Aditi Somani

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

Prathyusha Garimella
Prathyusha Garimella

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

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


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