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G. Gurumurthy

Coimbatore , Jan. 11

THE textile mills taking up modernisation, especially those planning on investment on machinery, would benefit from the Finance Ministry's move to do away with the special additional duty (SAD) component in the import duty.

Similarly, the incidence of import duty on synthetic and man-made fibre such as the polyester stable fibre/viscose stable fibre would be now without the SAD, which would bring down the import cost to the mills seeking import substitution of man-made fibre.

The total exemption of the SAD together with the lowering of the peak customs duty from 25 per cent to 20 per cent would augur well for the textile sector's current modernisation drive under the Technology Upgradation Fund (TUF) scheme.

Currently, imports under the specified machinery (under the lists nos. 30, 31, 45 and 46) are allowed and in the case of specified machinery as per the list no.31 whose overall concessional import duty incident elements including the basic customs duty of 5 per cent works out to 9.2 per cent and with the removal of the SAD, the importers would have the duty incident at just 5 per cent.

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