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Home / Knowledge / News / Textiles / CII recommends measures to govt for new stimulus package

CII recommends measures to govt for new stimulus package

22
Dec '08

CII has just submitted to the Government, the RBI and SEBI a comprehensive set of recommendations for consideration as the new stimulus package for the economy gets finalised.

CII has recommended the following for,

Textiles sector:
-Restore duty drawback to pre 1st October 2008 in view of declining exports and China
having increased tax rebate on exports from 11% to 17%.
-Immediate measures for subvention on exports by additional 2%.
-Provide Subsidies to farmers to support the high MSP of cotton through Cotton Corporation of India and keep cotton prices at par with international prices.
-Reduce cross subsidy by 50%.
-2% incentive under the Focus Market/ Focus Product Scheme to boost exports.

Chemicals & Petrochemicals sector:
-Duty on Naphtha across the board to be reduced from 5% to nil.
-Steps need to be taken to cut price of Natural Gas.
-Safeguard duty on products from China, Taiwan, Korea, and Israel.
-To revisit duty draw back and DEPB norms and cover use of Natural Gas, Naphtha, Power etc as inputs in calculation of duty draw back / DEPB.

Leather sector:
-Interest rate on term loans be reduced to 6% to the exporters of leather and leather manufactures (including footwear) for the next 3 years and made applicable for existing term loans.
-Increase DEPB rate.
-Service tax refund for post manufacturing services irrespective of whether they use Duty Drawback Scheme or not.

Click here to view the recommendations in detail.

Confederation of Indian Industry

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