SIMA says Union Budget is growth-oriented

29 Feb '16

2 min read

The Southern India Mills' Association (SIMA) has hailed the Union Budget 2016-17, saying it has come out with nine thrust areas to enable the country to achieve a sustained growth rate despite a global economic slowdown.

In a press release, SIMA Chairman M. Senthilkumar thanked the government for continuing optional Cenvat route on cotton textiles which was the main demand of the Association. He also expressed his gratitude to the government for allocating Rs.1480 crores for Technology Upgradation Fund Scheme.

He said that additional funds would be required to meet the pending subsidies since September 2014. Senthilkumar also welcomed the reduction of basic customs duty on MMF from 5 per cent to 2.5 per cent though the Association has demanded for total withdrawal. He has stated that reduction in customs duty on MMF would marginally improve the competitiveness of the MMF and their blended textile manufacturers in the country.

Senthilkumar said the government could have avoided imposing 2 per cent central excise duty without Cenvat credit facility or 12.5 per cent central excise duty with Cenvat credit facility on branded ready-made garments and made-ups materials priced above Rs.1000. According to the SIMA chief, since the Central government is expected to implement GST soon, it could have avoided levy of central excise duty on such items. He has stated that the tariff value of ready-made garments/ made-ups for the purpose of levying central excise duty has been increased from 30 per cent to 60 per cent of the MRP which would marginally increase the cost for the consumers.

However, he thanked the government for exempting non-branded textile items below the value of Rs.1000 from the purview of excise duty which would benefit the people below the poverty line. (SH)

Fibre2Fashion News Desk – India

More Southern India Mills' Association (Sima) News... More Textiles News - India...