FPCCI optimistic while submitting pre-budget proposal

12 May '08

3 min read

• Sales tax on LAB (Linear Alkyl Benzene H.S.code 3817.1020) is 15% which is basic raw material of LABSA (Linear Alkyl Benzene Sulphonic Acid H.S.code 3402.1110), which is zero rated. Therefore sales tax on LAB should be zero rated. It will save the local manufacturer from claiming refunds and blockage of funds.

• Imports of Dyes Sulphur (H.S.code3204.1910), Indigo Blue (H.S.code3204.1510) be zero rated instead of 5%. These are mainly used by textile/denim export industry.

• Reactive dyes (H.S.code 3204.1600), Pigments (H.S.code 3204.1700), Disperse dyes, it is recommended for 10% duty instead of 15%, as complaints are received of mis-declaration of dyes with 15% duty being cleared at 0% by black sheeps.

• 0% customs duty be fixed instead of 5% on spare parts for textile machinery of all kinds, weaving looms, etc. It will reduce cost of production of textile sector.

• 0% customs duty be fixed instead of 5% all types of power generators and parts/accessories, in view of acute power shortage and load shedding.

• All imported textile fabrics should have uniform rate of duty.

Fibre2fashion News Desk - India

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