Interviews
Garment exporters body criticizes interim budget proposals
18 Feb '09
2 min read
Reeling under the impact of a global slowdown, the Garments Exporters have criticized the Interim Budget proposals for lack of any special provision to provide necessary fiscal relief to the garment sector of the textile industry.
Reacting sharply to the Interim Budget proposals, Mr.G.S.Madan, President, GEA has pointed out that there is hardly anything new in the proposals that will help the garment exporting community to sustain their businesses in face of the global meltdown.
According to Mr.Madan, the Finance Minister has also failed to restore 100% exemption to export earnings under Section 80 HHC of Income Tax Act. He has also failed to provide necessary exemptions from Service Tax on all export related services, Fringe Benefit Tax and other Central and State Levies.
Interim Budget proposals are thus a let down for the garment exporters who were hoping that the Finance Minister would consider various recommendations of the exporting community to provide necessary fiscal relief to the Garments Exporters to help them overcome the present crisis being faced by them because of current recessionary trend and low unit value realization from overseas market.
Mr. Madan strongly recommends that at this moment a life saving relief is necessary for this labour intensive garment export industry in the form of a 4% increase in the duty drawback rates. He feels that only such a relief can with hold many garments exporters from closing shop and moving to other businesses which are more remunerative. Consequently this relief package can prevent the impending job losses for the illiterate and women who comprise the major work force for this industry.
Reacting sharply to the Interim Budget proposals, Mr.G.S.Madan, President, GEA has pointed out that there is hardly anything new in the proposals that will help the garment exporting community to sustain their businesses in face of the global meltdown.
According to Mr.Madan, the Finance Minister has also failed to restore 100% exemption to export earnings under Section 80 HHC of Income Tax Act. He has also failed to provide necessary exemptions from Service Tax on all export related services, Fringe Benefit Tax and other Central and State Levies.
Interim Budget proposals are thus a let down for the garment exporters who were hoping that the Finance Minister would consider various recommendations of the exporting community to provide necessary fiscal relief to the Garments Exporters to help them overcome the present crisis being faced by them because of current recessionary trend and low unit value realization from overseas market.
Mr. Madan strongly recommends that at this moment a life saving relief is necessary for this labour intensive garment export industry in the form of a 4% increase in the duty drawback rates. He feels that only such a relief can with hold many garments exporters from closing shop and moving to other businesses which are more remunerative. Consequently this relief package can prevent the impending job losses for the illiterate and women who comprise the major work force for this industry.
GARMENTS EXPORTERS ASSOCIATION
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