The Associated Chambers of Commerce and Industry of India (ASSOCHAM) recently urged the government to provide interest equalisation of 3 per cent for yarn exports in the next budget to ensure that domestic products can compete in global markets. The suggestion was part of its pre-budget recommendations on indirect taxes submitted to the government.
Two per cent of the benefits of the Merchandise Exports from India Scheme (MEIS) be extended to the spinning sector as the recent spike in raw material and other input costs have made the industry's survival tough, the industry chamber requested.
Drawing attention to implementation-related problems in the Technology Upgradation Fund Scheme (TUFS) in the last three to four years, ASSOCHAM requested that enough provision be made in the next budget to take care of old left out cases and the current dues in this scheme, according to India media reports.
The chamber also urged the government to reduce the hank yarn obligation by half from the current level of 40 per cent and sought abolition of customs duty on import of wool fibre. Apparel-grade wool of fine micron and other animal hair are not available in our country and have to be imported.
The goods and services tax (GST) on man-made fibre should be reduced from 18 per cent to 12 per cent and there should be an exemption from payment of GST on export of goods as the process results in blockage of working capital for a long duration, the chamber added in its representation. (DS)
Source: fibre2fashion.com