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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 service tax would make the 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..

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"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 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 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%.

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