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| Vol VI | Issue No.2 | June 15, 2004 |
| Chairman's Message | ||||||||||||
![]() M. Senthil Kumar CHAIRMAN |
The on-set of the new Government at the centre, has infused a considerable amount of optimism in the industry circles. As the powerloom textile industry is going through a difficult period on account of imposition of CENV A T and other difficulties, it is hoped that the new Government will be able to provide necessary relief to the industry, so that it could set the industry in order from the current turmoil. As you are well aware, imposition of CENV A T duty on unprocessed fabrics w.e.f. 1 st of March, 2003, has taken the powerloom textile industry out of its gear. It has disturbed the very foundation of the industry and it is therefore not surprising that in most of the production centres, 40% to 50% of the units have closed down, affecting deliveries to the domestic as well as to the international markets. |
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The PDEXCIL in its pre-budget Memorandum to the Government has made a number of suggestions. But the most prominent of which is the abolition of CENV A T on unprocessed fabrics. The PDEXCIL has pointed out that if CENV AT is removed completely on unprocessed fabrics, it would enable the industry to bounce back and expand its, level of output. It has also suggested abolition of basic and additional excise duty totally on cotton yarn, the basic raw material to the industry. Apart from the above, it has proposed reduction in the excise duty on processed fabrics to a uniform level of 5%. The PDEXCIL has also strongly pleaded for restoration of tax benefit under the section 80 HHC of the Income Tax Act. As far as extension of credit to the small scale powerloom sector is concerned, the PDEXCIL has urged the Government to consider this sector as a priority sector and meet its financial needs. Since the industry requires funds for modernisation purpose, it has urged to extend soft loans at favourable terms. It is hoped that the Government will consider all these suggestions and come out with appropriate Budget Proposals for 2004-2005 to provide necessary fillip to the industry. | ||||||||||||
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