The Textile Secretary, R Poornalingam stated that the ministry oped to embark on major improvisation within the sector and wished to reduce the excise duty on man-made fibres (PSF, VSF and ASF) and filament yarns from 16 percent to 8 percent in the next budget.
Curently, 16 percent excise duty is applicable on all staple fibres and filament yarns including the polyester filament yarn (PFY). But in the last budget, excise duty on PFY was reduced from 24 percent to 16 percent in order to rationalise the duties and levies on natural and synthetic fibres.
The entire textile value addition chain was removed from excise dragnet in this year's budget, except for the man-made fibre (MMF) segment, which includes synthetic and artificial fibres/filament yarns.
The MMF segment has not been sustaining healthy growth compared to rest of the organised textile industry, what with taxes being added to the final prices to the consumer.
In January-February this year, MMF textile exports sank 15 percent compared with the same period last year, despite the elimination of quota system. Synthetic textile producers accused higher cost of raw materials for this weak performance relating to the existing set of excise duties.
It is learnt that large-scale processing units will be set up in the coming months, following the abolition of excise duty and offering concessional import duties on a number of textile machinery products.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
