Friday, March 4, 2011

Tewari for restoring status quo on excise duty on garments

LUDHIANA, March 4:

\\Ludhiana MP and the national spokesperson of the Indian National Congress Manish Tewari has demanded that the excise duty regime be made optional as it existed prior to the 2011-12 budget.

Responding to the demand of various hosiery and garment associations, Tewari in a letter to the Union Finance Minister Mr Pranab Mukherjee, said, every association associated with the garment and hosiery industry has represented to him that status co may be restored and readymade garment and made-up of textiles should be retained under the optional excise duty regime.

Making a strong case for restoration of optional regime, Tewari said, given the hardship this decision would cause to lakhs of small entrepreneurs it is important to restore this industry to its pre-budget position by making the excise duty regime optional.

Substantiating his argument, Tewari, also referred to the budget speech of Mr P Chidambaram in 2004 where in the mandatory Cenvat duty had been withdrawn. Quoting the 2004 budget speech of Tewari said Mr Chidambram had made it clear that "there is a universal demand to free the handloom and powerloom sectors from the Cenvat regime. After giving my anxious consideration to the complex issues, I propose to withdraw the mandatory Cenvat duty. Instead, I propose to introduce a new tax regime for the textile sector and, in this exercise, i am happy to say that i have the full support of the Minister of Textiles".

He pointed out, lakhs of people depend upon this industry for their bread and butter. However, he added, the Industry is of a very fragmented nature whereby it is impossible to really complete the Cenvat chain.

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