The Cotton Textile Export Promotion Council of India (Texprocil) expects the increase in service tax by two per cent to 14 per cent to impact the overall cost.

Welcoming the Centre’s move to double the time limit for availing Cenvat credit on inputs to one year, RK Dalmia, Chairman, Texprocil said the government should have announced measures for speedy refund of service tax on export-related services.

The special additional duty on various imported raw material and inputs was announced, but unfortunately no mention of textile items in it, he said

Though textile industry was expecting higher allocation under the technology upgradation fund, the intention to roll out the much-awaited GST from April 1, 2016 and cut in corporate tax to 25 per cent from 30 per cent over four years is a big relief. GST would make manufacturing more competitive and support the ‘Make in India’ campaign, he said.

According to Economic Survey 2014-15, textiles sector has generated the highest employment. The sector is among the top seven categories of export products. However, the Budget has not addressed all the issues faced of the textile industry, he said, adding that a project development company to facilitate setting up manufacturing hubs in Cambodia, Myanmar, Laos and Vietnam will open up new opportunities.

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