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TEA President disappoints with second stimulus package
06 Jan '09
2 min read
The Central Government has announced Second Stimulus Package and in a press release issued, Shri. A. Sakthivel, President, TEA said he was totally disappointed with much awaited Second Stimulus package and unfortunately, the Government had not considered the following requisition made by the Association.
1. Five years holiday in payment of Income Tax for the garment exporters.
2. Two Years Moratorium from the payment of term loan and interest.
3. Exemption of exporters from the payment of all Service Tax and Fringe Benefit Tax instead of giving refund of tax paid on few services.
4. Duty Drawback Rate for cotton knitwear garments has to increase to 12%.
5. 7% Packing credit interest across the board
(or)
Increase of Interest subvention by another 2% and increase total interest subvention at 4% with retrospective effect from 1st October 2008.
Shri. A. Sakthivel said, if the Government is not considering the above measures immediately, then there will be not only loss in exports but also job losses and the major concern is that the pace of increase in job losses will be quickend in the forth coming days.
Shri.Sakthivel pointed out that when our competing country, China has increased the VAT refund given to exporters from 11% to 17% and reduced the Bank primary interest rate from 6.73% to 5.23% and other competing countries are enhancing the positive supporting measures to their exporters, our country is not addressing the issues to bailout the exporters from the crisis.
Other major concern is that the future export orders will go out of our country and that will be captured by our competing countries, due to their cost advantage.
Shri. A. Sakthivel appealed to the Hon'ble Prime Minister cum Finance Minister to consider the measures requested by him sympathetically for the benefit of knitwear garment exporting units.
1. Five years holiday in payment of Income Tax for the garment exporters.
2. Two Years Moratorium from the payment of term loan and interest.
3. Exemption of exporters from the payment of all Service Tax and Fringe Benefit Tax instead of giving refund of tax paid on few services.
4. Duty Drawback Rate for cotton knitwear garments has to increase to 12%.
5. 7% Packing credit interest across the board
(or)
Increase of Interest subvention by another 2% and increase total interest subvention at 4% with retrospective effect from 1st October 2008.
Shri. A. Sakthivel said, if the Government is not considering the above measures immediately, then there will be not only loss in exports but also job losses and the major concern is that the pace of increase in job losses will be quickend in the forth coming days.
Shri.Sakthivel pointed out that when our competing country, China has increased the VAT refund given to exporters from 11% to 17% and reduced the Bank primary interest rate from 6.73% to 5.23% and other competing countries are enhancing the positive supporting measures to their exporters, our country is not addressing the issues to bailout the exporters from the crisis.
Other major concern is that the future export orders will go out of our country and that will be captured by our competing countries, due to their cost advantage.
Shri. A. Sakthivel appealed to the Hon'ble Prime Minister cum Finance Minister to consider the measures requested by him sympathetically for the benefit of knitwear garment exporting units.
Tirupur Exporters Association (TEA)
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