Reconsider demands of garment sector in Budget, urges AEPC

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SME Times News Bureau | 02 Mar, 2015
Unhappy with certain Budget proposals, the apex apparel exporters body, Apparel Export Promotion Council (AEPC) requests the government to reconsider their demands of the garment sector in the Union Budget 2015-16.

Reacting to the Union Budget 2015-16 announcements, Chairman AEPC, Virender Uppal, "Appealed to the Finance Minister to reconsider the request of AEPC, which is the industry generating Rs One lac crore of exports by SME's (small and medium Enterprises).

He stated that, full taxes are not refunded by the Government for exports as such further increases in excise duty to 12.5 percent and Service Tax to 14 percent would make the industry further uncompetitive.

He urged the Government that All Industry Duty drawback rate should be enhanced immediately after taking into account the new incidence of service Tax, excise duty and increase of excise duty on diesel.

Uppal said, "Garment Export Industry was expecting favourable announcements with regard to the inclusion of fabrics to the extent of 2 percent of FOB value under the overall 5 percent entitlement in custom notification 10/2015 dated 01.03.2015, announcement on the 3 percent interest subvention for garment exports, deduction in the income tax for undertaking research and development, reducing the threshold investment limit from Rs 25 cr to Rs 1 cr, etc."

Chairman AEPC welcomed the decision in the reduction in corporate tax from 30 percent to 25 percent. However, he has appealed to the Finance Minister that this reduction be allowed from this year instead of next Financial Year and also full reduction of 5 percent may be given in the first year itself.