Home / Knowledge / News / Textiles / Pre-Budget memorandum for 2007-08

Pre-Budget memorandum for 2007-08

08
Feb '07
The textile and clothing (T&C) industry of India is performing very well in the domestic and international markets. The industry has invested substantially in modernization and capacity building during the last couple of years and the positive impact of such investments is discernible in the current growth in capacity utilization and exports by the industry.

Positive policy inputs from Government, especially rationalisation of excise and customs duty structure and removal of SSI reservations, have played a crucial role in this growth.

There are a few more measures required on the part of the Government in order to help the textile and clothing industry to achieve its immense potential for contributing to the economy in terms of industrial production, employment and exports. We are listing below the major points that require your immediate and kind attention.

Excise Duty:
a). Currently, the textile value chain from yarn to garments attracts excise duty at the rates of 4% for products from natural fibres and 8% for products from manmade fibres. The industry has the option of paying excise duty at the stipulated rate and claiming cenvat on the inputs or not paying excise duty. We would request that this option may be retained and the excise duty on manmade fibre products may be reduced to 4%, in order to make the rate fibre neutral.

b). Manmade fibres currently attract excise duty at the rate of 8%. Polypropylene chips attract 16% duty. Since most manufacturers have opted for zero duty for textile products, they are not able to take cenvat credit for these duties. We would request that excise duty on manmade fibres and polypropylene chips be reduced to 4%, at par with the recommended yarn duty.


Must ReadView All

Pic: Shutterstock

Textiles | On 25th Sep 2021

EU extends GSP plus status for Pakistan with 6 new conventions

The European Union (EU) has extended its general system of...

Pic: Shutterstock

Apparel/Garments | On 25th Sep 2021

Bangladesh seeks Russian support for ensuring direct exports there

Bangladesh commerce minister Tipu Munshi recently sought Russian...

Pic: Boris-B / Shutterstock.com

Retail | On 25th Sep 2021

US’ Halloween spending to reach $10.14 bn this year: NRF

Consumer spending in the US on Halloween-related items is expected to ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Water stewardship, Stakeholders

Water stewardship
Stakeholders

Water use efficiency remains relatively unexplored

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Ujjval Saraf,

Ujjval Saraf

Founded by Jimmy Lai, Giordano International Ltd, a Hong Kong based...

Sanjay Vakharia,

Sanjay Vakharia

One of the first few Indian denim brands, Spykar, established in 1992, was ...

Dr. Sean Blamires, Evolution and Ecology Research Centre

Dr. Sean Blamires
Evolution and Ecology Research Centre

Using spider silk for clothing may not seem to be an attractive...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Sunita Shanker, Label Sunita Shanker

Sunita Shanker
Label Sunita Shanker

Inspired by the rich traditional crafts of India, Sunita Shanker’s work is ...

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


September 2021

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


Advanced Search