Union Budget 2005-2006 - PFY Excise Duty Reduced to 16% - Government Must Reduce PSF Excise to 8 per cent, Excise on Texitle Machinery to 8% and Import Duty on PTA, MEG to Nil

摘要

One would like to concede that Mr P. Chidambaram, Finance Minister, Government of India has in presenting the Union Budget for 2005-2006, included a Special Focus on India's textile sector. Textile India Progress could say this with great confidence, because the Government has slashed the excise duty on polyester filament yarn from 24 per cent to 16% and announced several measures which will increase domestic production and consumption. The Finance Minister has also accepted some of the recommendations made by Textile India Progress and incorporated them in the Union Budget for year 2005-2006. These suggestions are reduction of excise duty on polyester filament yarn, a 10 per cent subsidy on textile processing sector and the publication's recommendation to announce a manufacturing competitiveness programme to improve the small-scale and medium-sized manufacturing industries. Mr Chidambaram announced Rs 40 crore for modernization of 20 clusters of handloom manufacturers and a 10 per cent capital subsidy scheme for the textile processing sector.