Indian textile sector presents wish-list from Union Budget

07 Jul '14

4 min read

Another senior official from an integrated textile group, who does not want to be named for genuine reasons, requests the government to reduce basic custom duty on PTA, MEG, PSF, POY & also wants SAD of four percent to be made into zero percent. He also wants the government to lower basic custom duty on textile machinery and also reduce SAD from four percent to zero percent.

He continues by saying, “There should be higher allocation of funds for TUFs subsidy and clearance of outstanding subsidies and excise duty on polyester fibres should be lowered from 12 percent to 8 percent.”

Mr Utsav Pandwar – CFO at Aarvee Denims wants continuance of exemption from excise duty for garment sector, additional allocation for TUFs, reduction in corporate tax, particularly in MAT and measures to encourage textile exports.

On various duties, Mr Swapan Nath – ED at MSUM India Ltd wants customs duties on import of textile machineries and imported furnace oil used for generating power for captive consumption by textile units to attract zero customs duty. He also wants excise duty on textile machinery, spares & components to be abolished and reduction in excise duty on furnace oil.

Additionally, Mr Nath wants the finance minister to restore accelerated depreciation for windmills at 80 percent under the Income Tax Act, which has now been reduced to 15 percent. He also request for exemption of mandatory cost audit of textile mills, as the details sought during the audit are available in the documents filed under the Companies Act.

Mr Paritosh Agarwal – ED at Suryalaxmi Spinning Mills too requests the finance minister to not re-impose excise duty on garments, lower duty on MMF fibres and to continue duty exemptions on yarn. Mr. Aadhitiya Lahoti ED of Mumbai-based Lahoti Overseas Ltd wants the government to announce incentives to push yarn exports as they have been sluggish this year.

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