The entire textile industry is going through rough times due to rupee appreciation, lack of export orders and reduced profit margins. However, the denim manufacturers of Gujarat are taking a sigh of relief as the State Government is planning to abolish five percent entry tax on Polyester Textured Yarn (PTY).
As Gujarat contributes more than 50 percent in total denim fabric production of the nation, the authorities cannot afford to let the sector suffer.
In an exclusive interview with Fibre2fashion, Mr Ashish Shah, Managing Director, Aarvee Denim asserted, “We have strongly urged the Government to abolish tax on PTY which is used in manufacturing denim, as PTY of coarser count from 300 to 600 denier and stretched yarn made out of Lycra and Spandex is manufactured in other states.”
Mr Shah further stated, “The major suppliers of PTY and super specialty stretch yarn outside Gujarat are Reliance Industries, Konark Synthetics and Indo Rama Synthetics, of which the former two run their units from Silvassa. The input cost will reduce to some extent once the tax is abolished.
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