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Levy zero-excise duty on viscose & MMF - AMFII
Mar '12
Reduce excise duty on viscose fibre/filament and other manmade fibres (MMF) to nil, a practice followed by other major textile countries, said the Association of Manmade Fibre Industry of India (AMFII).

This and other demands like retaining Special Additional Duty (SAD) in lieu of Sales Tax were made to the Finance Ministry as part of the budgetary recommendations.

In defence of its suggestion to levy zero excise duty on viscose fibre/filament, AMFII says, “It is a cellulosic fibre of natural origin, with properties at par with cotton. However, viscose and other made manmade fibres in our country attract an excise duty of 10.3% whereas for the other natural fibers like cotton, it is nil”.

It adds, “Manmade as well as natural fibres attract similar excise duty in other key cotton producing countries like China and Pakistan. So reduce duty on manmade fibres and viscose also to nil”.

This would result in promoting a Fibre Neutral Policy, a mission set in the National Fibre Policy by the Textile Ministry, and help in improving bringing the Indian fibre basket balance in line with global trends.

AMFII has also recommended retaining Special Additional Duty (SAD) in lieu of Sales Tax for providing a level playing ground and maintaining competitiveness for the domestic textile industry in the home market.

Click here to view excise duty structure in other countries.

Fibre2fashion News Desk - India

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