INDIA: Minister Works To Cut Excise Duties For Textile Mills
Indian Textile Minister, Kanshiram Rana, hopes to cut excise duties for larger textile mills and has taken up the issue of tax rationalisation with the federal Finance Minister. The rationalised tax structure will be unveiled in the next few weeks at the same time as the new textile policy. Rana said big spinning units were at a distinct disadvantage as compared with the units in the SSI sector in terms of excise rates. "This disparity needs to be corrected. I am talking to the federal Finance Minister Yashwant Sinha for the purpose," Rana said. "The burden for spinning mills and yarn sector is unbearable and needs to be reduced," Rana said while adding that a reduction in cost and improvement in quality were the two major issues in the textile sector. Rana dismissed fears that a cut in excise duties would lead to decline in revenue collections saying lower rates would instead lead to better compliance and fewer evasions. Taxes in spinning and the yarn sectors were increased by the government under a new three-tier tax slab of eight, 16 and 24 per cent from an earlier single tax rate of five per cent. "Under the new tax structure, the effective tax rate has increased from five per cent to 9.2 per cent," he said.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-style gives you the widest apparel and textile market coverage.
Paid just-style members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Leonie Barrie, editor of just-style
Help test our new apparel sourcing tool.
- What TTIP might mean for US, EU textiles & apparel
- Unlocks for the future fashion sourcing landscape
- Four steps to reduce product defects
- Geo-political uncertainty and how to survive it
- EU eyes mandatory due diligence for apparel supply
- US Q4 in brief – PVH Corp, J Crew, Perry Ellis
- H&M, VF Corp and Levi among most ethical companies
- Sears has "substantial doubt" of future
- Vietnam limits hazardous chemicals in apparel
- Target unveils "ambitious" store re-design plans
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective