Textile ministry to push cabinet for early fiber policy

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SME Times News Bureau | 01 Sep, 2010
The Ministry of Textiles will soon approach the Cabinet for making the National Fibre Policy, which will bring an end to the tax disparity between cotton and man-made fibre (MMF), a news agency reported on Tuesday.

According to the report, the Ministry of Textiles has circulated a draft Cabinet note on National Fibre Policy to the concerned ministries like revenue, agriculture, chemicals and commerce to seek their comments.

"Recently, we have sent a Cabinet note to the concerned ministries," the sources was quoted by the agency.

The draft National Fiber Policy , which was in the public domain since June, said that although there has been a substantial reduction in excise duties on man-made fibres and textiles, the current duties imposed on MMF and MMF textiles are still high.

While cotton is exempted from excise duty, MMF attracts excise duty of 8 percent, it said.

At present, man-made fibres account for 41 per cent of domestic fibre consumption, while cotton accounts for 51 per cent. In comparison, the ratio of man-made fibres to cotton consumption globally is 60:40.