The Hindu Business Line : Garment units seek cut in duty

Mr Darshan Mehta, President, Arvind Brands Ltd, Mr. Vikram Rao, Director, Indian Rayon and Industries Ltd, Mr Nikhil Mohan, Blackberrys, and Mr Avinash Goyal, Managing Director, Polki Garments, during a press conference in the Capital on Thursday.

NEW DELHI, April 24

A GROUP of "like-minded" garment manufacturers on Thursday sought a reduction in excise duty on readymade garments from the current level of 10 per cent to 4 per cent.

They have also made a case for enhancement in abatement levels from the existing 40 per cent to 60 per cent.

Flexibility in labour laws, they held, could be an "icing on the cake" for the garments industry, which in the next two years would face competition as well as opportunities thrown open by the dismantling of quotas.

"These are part of the wish list of the garment industry. We are very happy about the textile package announced by the Finance Minister in the budget. We only hope that there is no roll-back on some of the measures announced in the Budget like the one on the completion of cenvat chain," Mr Darshan Mehta, President, Arvind Brands Ltd, told newspersons here.

Besides Arvind Brands, the garment manufacturers forming part of the "like-minded" group included Indian Rayon, Blackberrys and Indus Clothing.

On the demands for a reduction in excise duty, garment manufacturers said that there is a case for reduction in duty as the tax-base had been broadened in this year's budget.

"Now the entire garment industry is on the excise net. Since the base has been widened, we feel that there is merit in seeking a reduction in duty. Last year, excise duty was applicable on only about Rs 2,000 crore of the nearly Rs 30,000 crore industry. The government would collect more revenues at lower rates and the industry can also grow at lower rates," Mr Mehta said.

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