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ASSOCHAM welcomes relief to healthcare, clothing industries
24 Mar '11
2 min read
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) welcomed finance minister Pranab Mukherjee's withdrawal of the proposed five per cent service tax on airconditioned hospitals with more than 25 beds and on diagnostic services.
The service tax on healthcare would have hurt the common man, said ASSOCHAM's secretary general D.S. Rawat. “We greatly appreciate the finance minister's decision to rollback the proposed service tax. This will help quality-oriented healthcare and diagnostics companies to render services to patients at lower costs.”
The healthcare service tax proposal was dubbed by many as the "misery tax."
Mr Mukherjee also provided some relief to readymade garment manufacturers by raising the abatement available for levy of taxes on retail price of some branded garments and textile made-ups.
Garment traders had criticised the proposed 10 per cent excise duty on readymade garments, saying it would hurt small businesses. Under the revised norms, 10 per cent excise will be levied on 45 per cent of the tariff value of retail price on branded readymade garments as against 60 per cent proposed in the original Budget proposal.
Mr Rawat said the textile and clothing industry is one of the largest employment generator in the country. Any additional burden on it at a time when global markets are still recovering from the impact of global economic slowdown would have hurt badly and left thousands of workers jobless.
The service tax on healthcare would have hurt the common man, said ASSOCHAM's secretary general D.S. Rawat. “We greatly appreciate the finance minister's decision to rollback the proposed service tax. This will help quality-oriented healthcare and diagnostics companies to render services to patients at lower costs.”
The healthcare service tax proposal was dubbed by many as the "misery tax."
Mr Mukherjee also provided some relief to readymade garment manufacturers by raising the abatement available for levy of taxes on retail price of some branded garments and textile made-ups.
Garment traders had criticised the proposed 10 per cent excise duty on readymade garments, saying it would hurt small businesses. Under the revised norms, 10 per cent excise will be levied on 45 per cent of the tariff value of retail price on branded readymade garments as against 60 per cent proposed in the original Budget proposal.
Mr Rawat said the textile and clothing industry is one of the largest employment generator in the country. Any additional burden on it at a time when global markets are still recovering from the impact of global economic slowdown would have hurt badly and left thousands of workers jobless.
Associated Chambers of Commerce and Industry of India
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