You are here: Home » Budget » Reactions » Industry
Business Standard

Hike in service tax will make industry uncompetitive: AEPC

The garment exporters body requested the Finance Minister to re-consider their suggestions such as giving 3% interest subsidy for the sector

Press Trust of India  |  New Delhi 

Unhappy with certain proposals, Garment exporters body AEPC today said increase in would make the uncompetitive in the global market.

Apparel Export Promotion Council (AEPC) Chairman Virender Uppal requested Finance Minister to re-consider their suggestions such as giving 3% interest subsidy for the sector.
Read our full coverage on Union Budget

"Full taxes are not refunded by the government for as such further increases in excise duty to 12.5% and to 14% would make the further uncompetitive," Uppal said in a statement.

The garment industry, he said, was expecting favourable announcements in the

He urged the ministry to take a re-look at their suggestions submitted before the Budget, as the sector is labour intensive and generates Rs 1 lakh crore revenue through

Uppal also suggested an increase in the rate of duty on imported inputs used for export purposes.

The Finance Minister has proposed increase in to 14% from 12.36%.

First Published: Sun, March 01 2015. 15:13 IST
RECOMMENDED FOR YOU