Indian Industries Association (IIA), an apex representative body of Micro, Small & expects exemption limit of Excise Duty to be minimum Rs.2 Crores instead of Rs. 1.50 Crores and also the figure in para 2(vii) be revised from Rs 300 lacs to Rs 500 lacs in the Union
Budget 2012.
It also proposes to restore the fiscal stimulus by reducing general rate of Excise duty to 8%, and all the exempted 120 commodity groups that have been brought under excise net should be subjected to 1% rate of duty along with all the benefits of CENVAT credit to the manufacturer as well as the buyer s to ensure there is no cascading effect even if it is as little as 1%.
Central govt has allowed duty free garments imports from Bangladesh, whereas the Govt has imposed excise duty @10% in March 2011 budget. Direct impact of this is that made up garments import ed from Bangladesh are cheaper by up to 15%. IIA feels that this will adversely affect the survival of made up garment industry in India. Keeping in view of the above the government must roll back the excise duty to save the Indian garment industry.
Source : articles.economictimes.indiatimes.com