Feb 26, 2016
SIMA seeks reduction in MMF levies in Budget
Feb 26, 2016
In a press release, SIMA Chairman M Senthilkumar said he hoped that the Union Government would consider long pending demand of the textile industry to remove the 5 per cent import duty, 4 per cent special additional duty and anti-dumping duty and also reduce the central excise duty from 12.5 per cent to 6 per cent levied on MMF. These duties push up the price of MMF and filaments by 23 to 30 per cent, he said.
SIMA has also requested the government to continue the optional Cenvat route for cotton textiles (zero or 6 per cent) which was introduced way back in 2004 due to break in the excise net across the textile value chain. Senthilkumar said that the Union Government is likely to implement GST in a short duration and therefore, it is essential to continue the optional Cenvat and thus prevent hardship for the ailing spinning sector due to steep fall in yarn exports.
Senthilkumar said he also hoped that the Union Budget would allocate adequate funds to clear the backlog in TUF subsidy which is pending since September 2014.
He said the Indian textiles and clothing sector has the potential to become a $350 billion industry from its current level of $110 billion and also create new jobs for 35 million people by 2023 if a level playing field is created in the 2016-17 Union Budget.
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