The Union Budget for 2010-11 has extended the 2% interest rate subvention for the exporters by one year. The Budget has also imposed Customs duty of 5% on crude oil.
Shri Ganesh Kumar Gupta, Chairman, The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) said: “It is disappointing that there is nothing in the Budget for the textile exporters.” The Indian textile industry needs encouragement and Government support to sustain its share in the world market. However, the sector has been ignored by the Budget, observed Shri Gupta. Even the funds allocation under the TUF Scheme has not been increased, the SRTEPC Chairman said.
The service tax rate has been retained at 10%. “Exporters were looking forward towards exemption of service tax on export related services as the current refund mechanism is cumbersome. However, the Budget has not addressed this issue,” Shri Gupta pointed out. Refund of accumulated Cenvat credits for the textiles sector, restoring income tax exemption on export earning, an increase in the rate of interest subvention were some of the expectations of the exporters which has not been addressed , according to Shri Gupta.
However, Shri Gupta said that the increased fund allocation for infrastructural upgradation was a welcome step as it will help modernization of roads, ports etc which will benefit the exporters in the long run. The SRTEPC Chairman expressed his view that the Duty Drawback rates for Man-made fibre textiles should be increased to ensure full neutralization of all indirect taxes and state level taxes.
Synthetic & Rayon Textiles Export Promotion Council (SRTEPC)