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| Govt should provide sufficient funds for TUFS: CITI |
| BS Reporter / Mumbai/ Ahmedabad Jun 01, 2009, 00:02 IST |
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Welcoming the importance assigned to exports and labour intensive industries like textile and clothing by the Finance Minister, the Confederation of Indian Textile Industry (CITI) has demanded that the government should provide sufficient funds for the Technology Upgradation Fund Scheme (TUFS).
"It is encouraging to note the importance that the Finance Minister has assigned to exports and to labour intensive industries like textiles and clothing. The stimulus packages announced by Government so far have not addressed the core issues of the textiles and clothing industry but we hope that positive measures can be expected in the ensuing Budget for revitalizing this highly labour intensive industry," said RK Dalmia, chairman of CITI.
"However, there is a need for providing sufficient funds for Technology Upgradation Fund Scheme, for refund of Terminal Excise Duty and for payment of Excise Rebate, Draw Back and Service Tax Refund to exporters," he added.
According to CITI, there have been inordinate delay in payment of these government dues and these have been rendering exports uncompetitive, at a time when neighbouring countries like China, Pakistan and Bangladesh have substantially increased their incentives for textiles and clothing exports after global economic slowdown started in August-September 2008.
Dalmia pointed out that in India, the rate of these incentives have only come down during this period and state level duties are not refunded to exporters, in spite of several representations to government. "In the absence of a mechanism for coordination among various state governments involved in textile transactions, the only practicable way for refunding state level duties would be for the central government to do so and then recover from statement governments if considered feasible," he said.
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