SME Times News Bureau | 14 Feb, 2018
Minister
of Textiles Zubin Irani On
Tuesday said
that reclassification of MSMEs and 5 percent reduction in tax on
annual turnover of companies up to Rs. 250 crore will help
manufacturing and increase employability in textiles sector.
Briefing
media in
New Delhi Irani
said increase in customs duty on silk and manmade fibre will
discourage cheap Chinese textile products from flooding the market
and benefit domestic manufacturers in the power loom sector.
Of
the Rs. 6000 crore special package, which was announced in 2016, for
the textiles sector, Rs. 1800 crore have already been released and
Rs. 300 crore will be released during the current financial
year, the Minister informed.
She
also spoke about 100 % increase in allocation for skill
development in Textiles sector.
The
correction in the GST rates on hand made and machine made garments
has created ease of doing business in these sectors, the Minister
said. GST rate has been reduced on yarn from 18% to 12% and GST on
job work has been brought down from 18% to 5%. Support for
merchandise scheme has been enhanced from 2% to 5% for the apparel
sector.
Irani
attributed 16 percent growth in apparel sector to the effective
implementation of subsidy schemes. Rs.138 crore has been disbursed to
28000 weavers as Mudra loan and 1.8 lakh garment workers have
formally joined Employees Provident Fund Organisation (EPFO).