Mr. J. Thulasidharan, President of the Indian Cotton Federation (ICF), has welcomed the initiative of the Finance Minister, Mr. Arun Jaitley, by presenting a growth-oriented Budget. The textile industry consumes around 95 per cent of cotton produced in the country. Around 65 per cent of the cost of the textile production is accounted for by the cost of cotton as raw material.
He says the exemption of service tax on loading, unloading, packing, storage or warehousing, transport by ship, rail or road of cotton, ginned or baled, is indeed a welcome move in the right direction. The service tax of 12.36 per cent exemption will benefit both the cotton trade and industry.
Incidentally, the Federation had earlier been representing to the Government for such relief to revive the industry.