Unhappy with certain Budget proposals, Garment exporters body AEPC today said increase in service tax would make the industry uncompetitive in the global market.
Apparel Export Promotion Council (AEPC) Chairman Virender Uppal requested Finance Minister Arun Jaitley 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 exports as such further increases in excise duty to 12.5% and service tax to 14% would make the industry further uncompetitive," Uppal said in a statement.
The garment industry, he said, was expecting favourable announcements in the Budget.
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 exports.
Uppal also suggested an increase in the rate of duty on imported inputs used for export purposes.
The Finance Minister has proposed increase in service tax to 14% from 12.36%.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.