Home / Knowledge / News / Textiles / Textile firms appreciate tax cut for MSMEs in Budget
Textile firms appreciate tax cut for MSMEs in Budget
02
Feb '17
Textile companies believe that tax reduction for micro, small and medium enterprises (MSMEs), that generate the maximum employment in the country, will help smaller retail entitites and drive the growth engine. The abolition of FIPB (Foreign Investment Promotion Board) to ease the flow of FDI is also likely to reap good benefits by speeding up the process.

This year’s Union Budget is an inclusive budget with a clear focus on agriculture, infrastructure, digitisation and employment generation, Deepak Chiripal, CEO of Nandan Denim Limited told Fibre2Fashion.

“MSMEs are the backbone of the industry and generate the maximum employment. Tax cut for the MSMEs with an annual turnover of Rs 50 crore is a welcome gesture and will drive the growth engine as most of India’s companies will get the benefit of 5 per cent tax reduction, which will be a relief for them,” said Chiripal.

He also said that labour reforms were much sought demand and budget announcement will definitely help foster a conducive labour environment leading to harmonious labour relations, which will further lead to higher productivity.’

“Government has increased allocation to Prime Minister Employment Generation Scheme by 3 times which will definitely help to achieve employment generation targets. Abolition of FIPB (Foreign Investment Promotion Board) to ease flow of FDI is a good move which will reap good benefits as it will speed up the process,” added Chiripal.

The increased tax limit slab is also likely to boost the market sentiments after a sluggish demand witnessed due to the liquidity crunch post demonetisation.

“Expanding tax net by increasing tax limit slab up to Rs 5 lakh will give more money into low-medium income groups. This move will give more money into hands of such people, which will trigger more demand in markets. After short term sluggish demand due to demonetisation, this will surely help to boost the market sentiments,” noted Chiripal.

The reduction in personal income tax is expected to result in an increase of disposable income of individuals.

“As anticipated by us, the reduction of personal income tax would increase the disposable income in the hands of individuals. As mentioned by the finance minister, about 96 per cent of individuals have an income of less than Rs 5 lakh and they tend to gain on reduction in income tax rate for income up to Rs 5 lakh,” Arun Ganapathy, CFO Spykar Lifestyle Pvt Ltd told F2F.

Regarding demonetisation, Genepathy sadid, “The statement of the Finance Minister that the impact on demonetisation will not spill over to the next year is a welcome one and would augur well for the industry. The reduction in corporate tax rates for SME corporate will help smaller retail entities.”

“Overall, the budget was as anticipated by us,” concluded Ganapathy. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Vietnam's textile-garment export turnover $16 bn in H1 '18

Apparel/Garments | On 19th Jul 2018

Vietnam's textile-garment export turnover $16 bn in H1 '18

Vietnam is among the world's five biggest textile exporters and...

Courtesy:  Pratibha Syntex

Apparel/Garments | On 19th Jul 2018

India's Pratibha Syntex aims $200 mn sales revenue by 2020

Pratibha Syntex, with interests in fibre, spinning, knitting and...

Kenya to use Sh6 bn Indian loan to upgrade Rivatex

Textiles | On 19th Jul 2018

Kenya to use Sh6 bn Indian loan to upgrade Rivatex

Kenya will use a Sh6 billion loan from India’s Exim Bank to expand...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search