The Hindu Business Line : Sisspa wants excise on cotton yarn scrapped

THE South India Small Spinners Association has asked the Centre to scrap the levy of excise duty on cotton yarn as unlike the man-made fibre industry, the cotton spinning sector using an agriculture product as its raw material is not eligible for Cenvat credit on the raw material used.

Expressing concern over the recommendation by the Kelkar Committee on indirect taxes, which sought to increase the excise duty on cotton yarn from the current 8 per cent to 16 per cent, the association President, Mr R. Chinniyan, said the move would kill the cotton spinning industry.

He wanted the Government to concede the industry's demand to do away with excise duty and bring down the hank yarn obligation by 25 per cent.

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