NEW DELHI: The increase in allocation for Technology Upgradation Fund and provision for Scheme for Integrated Textiles Parks in the Budget '06, will promote investments in the textile industry, Garments Exporters Association, President Mr Sudhir Kharabanda said here on March 04.
The president appreciates the Union Finance Minister’s positive approach for the textile industry in the way of enhancing TUF from Rs 435 crore to Rs 535 crore and Rs189 crore provisions for Scheme for Integrated Textiles Parks.
The excise duty on the manmade fiber yarn and filament yarn brought down from 16 per cent to 8 per cent and further yarns from 15 per cent to 10 per cent will act in right direction to improve price competitiveness of the products, president added.
The president further urges the government to reconsider the approach on Fringe Benefit Tax which will develop an additional burden on the exporters to create a separate department to look after this tax modus. The increase in service tax will also create financial burden on exporters as most of them are not covered under CENVAT.
Mr Sudhir Kharabanda also requested the government to provide a suitable package of incentives including higher duty drawback rates, adequate and need based funds to exporters at reasonable rate of interest and assured Labour reforms with flexible Laws to prepare textile Industry of the country for the new quota free environment.