Home / Knowledge / News / Textiles / Punjab slashes VAT on yarn
Punjab slashes VAT on yarn
17
Mar '16
The cotton spinning industry in Punjab has welcomed the reduction of VAT on cotton and other yarn from 6.05 per cent to 3.63 per cent in the state budget.

The reduction of VAT had been a long standing demand of the cotton spinning industry. Punjab has around 100 spinning mills, of which 10 mills with installed capacity of 1.5 lakh spindles had closed recently due to unfavourable tax regime. Following the reduction of VAT, the industry is hoping to get a level-playing field to compete with the spinning industry in neighbouring states, The Times of India has reported.

Ginners feel that although the development though has no direct bearing on cotton ginning factories, it will provide some relief as demand for yarn will increase and spinning mills will increase cotton purchases. Ahead of the government announcing the reduction of VAT, the weaving industry in Punjab preferred to buy yarn from spinners from Himachal, UP and Uttrakhand.

"The spinning industry was facing tough times in Punjab due to higher VAT. The spinners from neighbouring states used to sell it at 2 per cent VAT but with reduction in tax rates, the spinning industry will be able to compete," said Bathinda-based Indian Cotton Association Limited (ICAL) former president Rakesh Rathi.

Barnala-based Trident Group spokesperson Rupinder Gupta said, "Reduction in VAT will prove a big relief to Punjab-based spinning industry. Trident has a spinning unit at Dhaula near Barnala. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search