Save Punjab’s hosiery and textiles industry, says BadalMarch 7th, 2011 - 11:43 pm ICT by IANS
Chandigarh, March 7 (IANS) Punjab Chief Minister Parkash Singh Badal Monday urged the central government to save the hosiery and textiles industry in the state, by introducing optional tax exemption for branded goods.
Badal made his appeal, in separate letters to Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee, after meeting a delegation of hosiery and textiles industry, led by Punjab Small Scale Industry Development Board chairman Inderjit Singh Pardhan.
“The delegation members submitted a detailed representation, seeking relief in terms of reintroduction of optional exemption on all products and textiles industry cleared under a brand name. The union budget 2011-12 has withdrawn exemption to all goods bearing a brand name or sold under a brand name falling under Chapter 61, 62 and 63 of Central Excise Tariff Act, 1985,” a government spokesperson said here.
“This has put the entire industry in a tight spot and resulted in the levy of excise duty at 10.3 percent on all products of hosiery and textiles industry cleared under a brand name. The excise duty has been levied on 60 percent of MRP (maximum retail price),” he added.
In his letters to the prime minister and the finance minister, Badal has also apprised the central government that this industry was already facing big threat from garments imported from China, Bangladesh and Sri Lanka.
“Due to large scale production in China and support from government, their products are much cheaper compared to our products. In such circumstances, it is not possible for our industry to increase price of its products and it would be slowly wiped out,” Badal contended.