Industry resiles big hopes to be met by Budget-2011
The count down for budget is already begun. Commerce big wheels across India are keeping their fingers crossed to get their wish-list fulfilled. There is guess-work going on in business minds- the industries' representatives and honchos, on which of their petitions listed may go ticked 'Yes' in Union Budget 2011-2012 to be presented by Hon'ble Finance Minister in Parliament on 28th February, 2011.
News team at Fibre2fashion via tele-talks recorded aspirations of a few of major players in textile and garment industry, to find out how they figure out actual expectations to be met by this budget.
Mr Rahul Mehta, President of Clothing Manufacturers Association of India (CMAI), speaking to fibre2fashion, gushes, “We are looking for an increase in Duty Drawback as we are today not getting refund of the State level and Local level taxes that we are paying. Also, we would like the Government to encourage the exports of Finished Goods instead of exports of Raw Materials, so as to promote greater employment.”
Chairman Mr Devikishan Manghani, FOSTTA - association representing Indian textile hub - Surat has a long list of 'SHOULD-DOs' for FM, wherein, as a textile representative body, FOSTTA urges Income Tax limit bar to be extended from 40-60 lakhs to 1 crore for their businesses. According to Manghani, the new clauses of taxing on 8% net profit are unjust and not viable in wholesale businesses as around 15% gross profits can only help reach 8% as net profit, which is possible in Retail but not for wholesalers. The chairman is also worried for such clauses bringing in high inflation and ultimately, difficulties to a common man. Being considerate for small enterprises and professionals in sector, he has also suggested government to raise the IT bar to 3 lakhs.
Mr Manghani recommends the system for maintenance of infrastructural security, cleanliness and decorum in the major textile city in Surat or pan, as sector is vital economy driver to the country, to be the liability of government but unfortunately not rendered till now. He also questions on reasonability of service tax demanded on collections above 10 lakhs, as service tax is respectively being paid on each service availed.
Concerned for present dearth of basic material – Yarn amongst weavers, Devikishan puts forward demand to policy makers for necessary arrangements. He points up present times to be era of globalization, thus necessitrating equal right to adequate import along with exports for which removal of antidumping duties on import is essential most according to him. In addition, he feels there should be a curb on exports of raw yarn so as to retain enough quantity for domestic consumptions. He finds exports of finished products to be more benefiting Indian textile industry than exporting raw materials.