Roll back excise duty on branded garments: BuddhadebMarch 8th, 2011 - 10:32 pm ICT by IANS
Maheshtala (West Bengal), March 8 (IANS) West Bengal Chief Minister Buddhadeb Bhattacharjee Tuesday demanded a roll back of the ten percent excise duty levied on branded garments in the union budget, saying it has adversely hit sellers of garments made indigenously.
In a letter to Finance Minister Pranab Mukherjee, the chief minister noted that cotton yarn prices have gone up due to large-scale exports.
“I have written to Pranab Mukherjee today (Tuesday). Thread prices have gone up as hundreds of tonnes of cotton yarn are being exported. This has hit the hosiery and handloom sector hard as they have had massive cost escalations,” Bhattacharjee said in his first election meeting after the announcement of the state assembly poll dates.
“The recent budget has levied ten percent excise duty on branded garments and made-ups of textiles. I ask Pranab Mukherjee at whose wise counsel have you imposed this,” he said, adding that as a consequence, those who sell foreign-made clothes will earn good profits, while those dealing in garments made indigenously will suffer.
“This duty must be withdrawn,” he demanded.
In his budget speech Feb 28, Mukherjee had said that ready-made garments and made-ups of textiles are currently under an optional excise duty regime and a manufacturer is required to pay duty only if he wishes to avail of Cenvat credit.
“Our garment and made-ups industry has come of age and has shown handsome growth in recent years. As part of base expansion, I propose to convert the optional levy into a mandatory levy at a unified rate of 10 per cent. The levy would, however, apply only to branded garments or madeups and not to those tailored or made to order for a retail customer,” he said.
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