Home / Knowledge / News / Textiles / SIMA Chairman welcomes CM decision on removal of VAT
SIMA Chairman welcomes CM decision on removal of VAT
23
Jul '11
The predominantly cotton based textile industry has been facing a grave crisis across the country particularly in Tamilnadu, which accounts for 47.5% of the spinning capacity, 60% of yarn exports, 1/3rd of the textile business, employing 50 lakh people, particularly rural masses and women folks.

The Government of Tamilnadu while enhancing the VAT rate from 4% to 5% from July 11, 2011, also brought the cotton fabrics under the VAT net, which had been all along exempted. A majority of the spinning mills are incurring huge cash losses due to crash in cotton and yarn prices following the unprecedented glut in the domestic and international markets and have reduced the production to the tune of 40% from 24th May 2011 to minimise the losses.

The levy of 5% VAT on fabric would greatly affect the powerloom sector which uses hank yarn and also yarns purchased from other States by paying 2% CST. Against this background, The Southern India Mills' Association (SIMA) had appealed to the Hon'ble Chief Minister of Tamilnadu to exempt fabrics and its related products from VAT so as to enable the textile industry in Tamilnadu to sustain its competitiveness and regain its growth. The Hon'ble Chief Minister was kind enough to remove the 5% VAT on cotton fabrics and its related products.

In a press release, Mr.J.Thulasidharan, Chairman, The Southern India Mills' Association (SIMA) has profusely thanked the Hon'ble Chief Minister of Tamilnadu for favourbly considering the representation of SIMA and removing the VAT on cotton fabric and its related products. Mr Thulasidharan also thanked the Government for collecting various statistics from the Association, making an in-depth analysis of the same and removing 5% VAT on cotton fabrics and its related products.

SIMA Chief has stated that the decision of the Government in removing VAT on cotton fabrics is in the right direction, which would greatly benefit the powerloom sector and also knitted garment sector in Tirupur, made-up sector in Karur and Madurai. Mr Thulasidharan informed that the textile sector was in the reviving mood and would regain its competitiveness once the Central government also announces a bail out package and restore export benefits.

SIMA Chairman has also thanked the Hon'ble Chief Minister of Tamilnadu for taking various steps on a war footing particularly issues relating to power and pollution.

The Southern India Mills' Association (SIMA)

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search