Home / Knowledge / News / Apparel/Garments / Garmenters reject FM's new proposal, resume strike
Garmenters reject FM's new proposal, resume strike
25
Mar '11
The garment manufacturers in the country have gone on an indefinite strike from March 24, to protest the proposed levy of 10.3 percent excise duty on 45 percent of the MRP value of their goods, in place of 60 percent.

Alongside, more than 100,000 garment producers would also organize “non-stop protest rallies” throughout the country.

Pranab Mukherjee, the Finance Minister, had recently revised excise duty of 10.3 per cent payable by manufacturers to 45 per cent of the MRP value. However, the garment makers have rejected the proposal and are protesting the levy.

The garment makers are claiming that, reduction in the MRP value for duty imposition from 60 to 45 percent is actually not a relief but just a rectification of the Finance Ministry's miscalculation.

The producers' selling price usually comes to 35 to 45 percent of the MRP, and as it is well understood that the excise duty is a 'tax on manufacturing', the recent move is just a rectification to levy the duty on producer's selling price. It is no relief as the excise duty still prevails at 10.3 percent of the producer's selling price.

The industry outlook is that, as the food inflation in the country rose to over 10 percent during last one year, while the annual inflation in clothing also increased to around 30 to 50 percent, and it is in these areas where the common man was seeking some relief.

But instead of providing that relief, the government, with such duty imposition has induced a further inflation rise of around 10 to 15 percent.

The industry claimed that, the branded apparels are not exclusively meant for the rich and elite class, as the clothes vended on the road side are also branded. Further that, it is not advisable to promote non-branded apparels as there is no guarantee of quality, which is detrimental to the interest of the consumers.

Fibre2fashion News Desk - India


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

C Dhandayuthapani

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

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ashok Desai
Bombay Textile Research Association

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

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

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

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search