ICMF Suggests Removal for Loopholes in Excise Duty for Textiles

摘要

Dr. B.K. Krishnaraj Vanavarayar, Chairman ICMF has urged the Finance Minister and the Textile Minister to remove the loopholes that exist in the excise duty structure for the textile industry, in spite of the extensive rationalization effected in the last Budget. In the Pre-Budget Memorandum addressed to both the Ministers, Dr. B.K. Krishnaraj Vanavarayar, suggested that the turnover-based exemptions for weavers and garmenters and the concessional rate of excise duty for semi-power processors be withdrawn. While appreciating the revamping of the excise duty structure that the Government had effected progressively during the last couple of years, Chairman ICMF has pointed out that the exemptions that have still been retained have been assisting extensive excise evasion in the industry. He has also suggested that the rate of excise duty for the entire textile chain from yarn to garment may be unified at 8 per cent, since differential duty rates for products on the basis of fibre, manufacturing process, etc., would lead to misdeclarations and high duty rates for any segments in the industry would encourage evasion.