• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

K.R. Srivats

NEW DELHI, April 2

THE Government should not bow to the pressures of a section of the textile industry, which is not keen on having a completed Cenvat chain.

A broken Cenvat chain will be disastrous for the growth prospects of the textile industry as such a framework would stifle investments into the sector, according to Mr O.P. Lohia, Chairman of the FICCI Task Force on Textiles.

Ever since the Finance Minister, Mr Jaswant Singh, announced in his Budget speech that the Cenvat chain would be completed, there has been intense lobbying against such a move.

"There is resistance to the completion of CENVAT chain. This is because many players in the industry do not want to come under the tax net.

Further, the Government must realise that it would be impossible to move towards a national VAT without a completed CENVAT chain," Mr Lohia told Business Line here.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Trade feels VAT rubs salt on wound

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line