Menon Hopes For Excise Roll Back.

Textiles Secretary Rita Menon hopes the 10 per cent excise duty on branded garments which has been a bug bear for the industry for the past few months, will be rolled back in the next budget. That’s what will happen. A letter will be written to the Finance Ministry by the end of July 2011 to seek roll back of the duty. She felt the duty was a bit harsh on the domestic garment retail industry, which is already facing tough competition in the global market from other countries.

The textile ministry, after discussions with retailers like Pantaloon and Shoppers Stop, has mapped out the impact of the excise duty on the demand for branded garments in the domestic market in the forthcoming Diwali season. Finance Minister Pranab Mukherjee had announced a 10 per cent excise duty on branded garments in his budget speech. But following widespread protests a 50 per cent abatement was given to the industry, meaning the levy would be imposed only on 50 per cent of the cost of the product. Of the total estimated Rs 1,00,000 crores apparel business in India annually, about Rs 60,000 crores (as per norms for considering branded apparels) comes from this segment.

Source : fashionunited.in