Interviews
CITI welcomes abolition of textiles committee Cess
25 May '07
2 min read
The Confederation of Indian Textile Industry (CITI), which represents the entire textile value chain including textile machinery industry, has welcomed the decision taken by the Central Cabinet on 24th May 2007 to abolish the Cess being collected from the textile and textile machinery industry under the Textile Committee Act.
Reacting to the decision, Shri Shekhar Agarwal, Chairman, CITI stated that the Textiles Committee Cess initially charged at the rate of 0.025% of the turnover and later increased to 0.05%, had outlived its utility long back and was an avoidable burden on the textile and textile machinery industry.
The Cess was ostensibly meant for running the Textiles Committee. However, the Cess collections were more than three times the amount required for running the Textiles Committee.
It has been a long standing demand from the textile, garment and textile machinery industries that the Cess may be abolished. On garments, the Textile Committee Cess was abolished last year and the industry has been persistently requesting that all the other products in the textile chain and the textile machinery also be exempted from the Cess.
This demand of the industry has now been accepted by Government in full, and the present decision of the Cabinet exempts the entire textile value chain and machinery from the Textiles Committee Cess.
At a time when the industry is already facing serious problems in the context of the steep appreciation of the Indian Rupee, high raw material prices, the considerable and continuing increase in interest rates and a demand recession in some of the major markets like USA, the decision to abolish the Textiles Committee Cess will render some relief to the industry.
Shri Shekhar Agarwal stated that the textile and textile machinery industries were extremely grateful to the Government for this positive decision at this difficult juncture.
Reacting to the decision, Shri Shekhar Agarwal, Chairman, CITI stated that the Textiles Committee Cess initially charged at the rate of 0.025% of the turnover and later increased to 0.05%, had outlived its utility long back and was an avoidable burden on the textile and textile machinery industry.
The Cess was ostensibly meant for running the Textiles Committee. However, the Cess collections were more than three times the amount required for running the Textiles Committee.
It has been a long standing demand from the textile, garment and textile machinery industries that the Cess may be abolished. On garments, the Textile Committee Cess was abolished last year and the industry has been persistently requesting that all the other products in the textile chain and the textile machinery also be exempted from the Cess.
This demand of the industry has now been accepted by Government in full, and the present decision of the Cabinet exempts the entire textile value chain and machinery from the Textiles Committee Cess.
At a time when the industry is already facing serious problems in the context of the steep appreciation of the Indian Rupee, high raw material prices, the considerable and continuing increase in interest rates and a demand recession in some of the major markets like USA, the decision to abolish the Textiles Committee Cess will render some relief to the industry.
Shri Shekhar Agarwal stated that the textile and textile machinery industries were extremely grateful to the Government for this positive decision at this difficult juncture.
Confederation of Indian Textile Industry
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