The proposals in the Central Budget 2014-15 presented by the Finance Minister, Mr. Arun Jaitley, are a “mixed bag” for the textiles industry, according to the Confederation of Indian Textile Industry (CITI).
Reacting to the Budget proposals, Mr. Prem Malik, CITI Chairman, in a statement, has thanked the Finance Minister for the continuing optional excise duty regime for textiles and clothing and for announcing several textile clusters in various parts of the country. The exemption of service tax on handling and transportation of cotton would be helpful both to the farmers and the textiles industry.
Extending investment allowance of 15 per cent on investments of more than Rs. 25 crores in plant and machinery and the proposal to develop an entrepreneur-friendly bankruptcy framework for SMEs would be helpful to small units in the textiles industry. He requested that the bankruptcy framework may also be extended to larger units.
Mr. Prem Malik however requested the Finance Minster to withdraw the excise duty of 6% on PSF and PFY manufactured from plastic waste and scraps, and pointed out that such regenerated fibres are extensively used in the textiles industry. As a basic raw material, the excise exemption on it has been adding to the competitiveness of the textiles industry.