GEA calls on Textile Minister to undertake policy reforms

15 Jun '09

5 min read

3. To restore 100% exemption to export earnings under Section 80 HHC of Income Tax Act at least for the next five years.
4. In view of acute power shortage, Government should encourage captive power generation by providing diesel at international prices and exempt the same from excise duty and local levies.
5. To exempt from Service Tax all the export related services to avoid blockage of capital of exporters, as the procedure for refund is time-consuming, resulting in unnecessary delays and harassment.
6 To exempt exporters from Fringe Benefit Tax since this is counter productive to the export efforts.
7. GEA would like the Government to implement GST (Goods & Service Tax), at the earliest.
8. Apart from taxation relief, GEA would expect the Government to reduce the transaction cost by simplifying administrative procedures by avoiding delays at customs clearance of goods; improving loading and unloading of cargo and infrastructure at ports to avoid congestion at various ports.
9. Import duty on man made fibres to be reduced to zero, so that the garment exporters can get cheaper man made fabrics available in the country for manufacture and export garments at more competitive prices.

Issues relating to Ministry of Commerce:
1. To treat the exporters who export 100% of their product irrespective of their location at par with 100% EOU's.
2. To provide 100 per cent risk coverage through cheaper ECGC Scheme to encourage exporters to take risks with new markets and new customers.
3. Improve fabric processing facilities by allowing import of machinery required for fabric processing at zero percent duty.
4. Allow duty free import of fabrics and trimmings and garment machinery used for garment exports.
5. To extend the Focus Market Scheme to all Markets for export to further broaden our market base in these difficult times of world wide recession rather than to restrict exports only to EU and USA.

Issues relating to Ministry of Labour:
Garment manufacturing is extremely labour intensive and will remain so even with greater automation. A congenial labour environment is, therefore, necessary to ensure maximum productivity. The obsolete and antiquated labour legislation has hindered the growth of the extremely labour intensive garment manufacturing. The restrictive industrial and labour laws restrain management's capability to respond professionally, effectively and speedily to the fast changing dynamic international textile scenario and request for labour reforms with flexible labour laws to increase productivity.

There is an urgent need for flexible labour norms specific to garment manufacturers and exporters to enable them to meet the increasing international competition especially with regard to employment of casual labour and overtime hours of work during high season which are necessitated by the requirement of meeting tight delivery schedules required for export.

GARMENTS EXPORTERS ASSOCIATION

More GARMENTS EXPORTERS ASSOCIATION News... More Apparel/Garments News - India...