Manoj Kumar Tibrewal, Managing Director, Gangotri Textile Ltd gives his post-budget comments exclusively to Fibre2fashion.
Positive Points
Good budget for the textile sector and very happy to note that TUFS has been extended for further 5 years.
Very encouraging decision that Rs425 crores allotted for textile parks. By this, more employment opportunities would be generated and the people in rural areas will be highly benefited. Revenue to the government will also increase.
All the business class as well as consumers will be benefited by 1 percent cut in Central Sales Tax.
Service tax: Small service providers exempt up to Rs8 lakh. Customs duty on Polyester to be reduced from 10 to 7.5 percent. This is also beneficial for the textile sector.
Enhancing employment for physically handicapped by way of reimbursing employer share of EPF payment
Negative Points
Service tax extended for collection of rent for the commercial premises let out for rent. This will be major set back as most of the middle class businessmen and industrialist running their business on rental premises and this will reduce their profitability.
We were expecting that the Income tax slab for individuals will be enhanced as there is a steep hike in cost of living which has not been considered.
Excise duty on Synthetic Fibre and Textile Machinery – not reduced.
Increase in Dividend Tax – Retrogative step to help corporation of India – Dividend Tax should be abolished. Actually it amounts to double taxation.
Fibre2fashion News Desk - India
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