Interviews
Budget disappoints captains of textile & apparel sector
08 Jul '09
6 min read
“Even for export of yarn, all drawback rates will remain the same for quite sometime, which will also be a burden on exports, as the raw materials rate for the purpose of draw back will also remain high, due to the increase in excise duty and the extension of 2% subvention will prove to be only partially helpful”, he added by saying.
He concluded by saying, “The amounts available under TUF outlay have been paid only till September 2008 and for the rest of dues till date, the mills are all waiting. I will only request the Finance Minister to kindly give his attention once again towards the taxes and duties borne by the sector and correct the same, so that the costs do not increase”.
Mr Arun Goyal, Chief Financial Officer of the Punjab based, Abhishek Industries Ltd however had mixed reactions on the budget. He said, “The Union Budget 2009-10 is a more or less a mixed bag with prominence attributed to rural-development. The budget brings benefits to the common man and rural poor have been major beneficiaries, but it has not been able to meet the expectations of the industrial and corporate sector at large”.
“The exemption limit for Income Tax has been welcomed and is worth appreciating. The budget tinkered with tax slabs for individuals, but left the corporate tax structure untouched and the abolition of Fringe Benefit Tax and Commodity Transaction Tax is a welcome step in the direction of industrial growth but increase in Minimum Alternate Tax has been a disappointment”, he explained by saying.
He continued by saying, “For the textile industry, stricken with the market recession, it has been a disappointment especially with no benefits in form of extension of TUF scheme and increase in subsidy rates which were not considered and the removal of the anomalies in textile duty rates by providing option of 4 percent duty rate on 100 percent cotton products has further removed the incongruent provisions under Cenvat Credit Rules-2004 causing hardship to exporters in claiming rebate/refunds due to earlier stimulus package announced on December 7, 2008”.
He optimistically concluded by saying, “Though the industrial expectations were not fulfilled, holistically the budget reflects the needs of the people and is promising for the development of the country”.
Mr Sunil Khandelwal, Chief Financial Officer at Alok Industries Ltd too was neutral about the budget and said as much. He said, “Budget has been neutral one. There is not much given to the industry and will have neither positive nor negative impact on the industry. We were expecting a higher TOI subsidy and also there has been minimal increase in subvention”.
Mr Rajendra Hinduja, Managing Director of Gokaldas Exports too was scathing about the budgetary announcements and did not mince words by saying, “We are disappointed with the budget as there was no announcement supporting the industry. As it is, exports are declining and no relaxations have been given in the taxes and subvention has been very minimal also industry is already facing problems than what is the point in generating new job opportunities”.
He concluded by saying, “The amounts available under TUF outlay have been paid only till September 2008 and for the rest of dues till date, the mills are all waiting. I will only request the Finance Minister to kindly give his attention once again towards the taxes and duties borne by the sector and correct the same, so that the costs do not increase”.
Mr Arun Goyal, Chief Financial Officer of the Punjab based, Abhishek Industries Ltd however had mixed reactions on the budget. He said, “The Union Budget 2009-10 is a more or less a mixed bag with prominence attributed to rural-development. The budget brings benefits to the common man and rural poor have been major beneficiaries, but it has not been able to meet the expectations of the industrial and corporate sector at large”.
“The exemption limit for Income Tax has been welcomed and is worth appreciating. The budget tinkered with tax slabs for individuals, but left the corporate tax structure untouched and the abolition of Fringe Benefit Tax and Commodity Transaction Tax is a welcome step in the direction of industrial growth but increase in Minimum Alternate Tax has been a disappointment”, he explained by saying.
He continued by saying, “For the textile industry, stricken with the market recession, it has been a disappointment especially with no benefits in form of extension of TUF scheme and increase in subsidy rates which were not considered and the removal of the anomalies in textile duty rates by providing option of 4 percent duty rate on 100 percent cotton products has further removed the incongruent provisions under Cenvat Credit Rules-2004 causing hardship to exporters in claiming rebate/refunds due to earlier stimulus package announced on December 7, 2008”.
He optimistically concluded by saying, “Though the industrial expectations were not fulfilled, holistically the budget reflects the needs of the people and is promising for the development of the country”.
Mr Sunil Khandelwal, Chief Financial Officer at Alok Industries Ltd too was neutral about the budget and said as much. He said, “Budget has been neutral one. There is not much given to the industry and will have neither positive nor negative impact on the industry. We were expecting a higher TOI subsidy and also there has been minimal increase in subvention”.
Mr Rajendra Hinduja, Managing Director of Gokaldas Exports too was scathing about the budgetary announcements and did not mince words by saying, “We are disappointed with the budget as there was no announcement supporting the industry. As it is, exports are declining and no relaxations have been given in the taxes and subvention has been very minimal also industry is already facing problems than what is the point in generating new job opportunities”.
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