Attire exporters physique AEPC on Saturday urged the federal government to announce tax incentives, together with elimination of a provision requiring funds to MSMEs inside 45 days to assert deductions and customs obligation exemption on garment equipment imports.
The Attire Export Promotion Council (AEPC) has additionally requested that an curiosity equalization fee of 5 per cent be introduced within the Price range, scheduled to be unveiled on February 1 by Finance Minister Nirmala Sitharaman.
Different calls for embody extension of concessional tax fee for brand spanking new manufacturing models to encourage organising of latest garment models; simplification within the process of imports of trims and elaborations underneath IGCR (Import of Items at Concessional Charge); and liberalizing e-commerce export procedures.
“Prepared Made Clothes (RMG) business has additionally demanded elimination of Sec43B (H) of IT Act within the ensuing Price range which pertains to cost to any MSME corporations inside a most 45 days’ time to assert any deduction in tax. This has elevated tax liabilities and has disrupted the money movement of exporters,” it mentioned in an announcement.
It added that the cap per consignment of export worth underneath e-commerce must be elevated to minimal Rs 25 lakh and export realization interval must be prolonged to 12 months.
India’s garment export sector depends closely on imported equipment to keep up high quality and international competitiveness, as home manufacturing is inadequate to satisfy demand.
“Excessive import duties make Indian clothes exports much less aggressive vis-a-vis international locations like Bangladesh and Vietnam. AEPC recommends not solely persevering with current exemptions but additionally decreasing the customs obligation to zero on remaining garmenting equipment to boost the sector’s effectivity,” it mentioned.
AEPC Chairman Sudhir Sekhri mentioned, “The Union Price range is a superb alternative the place our calls for for long-term coverage assist may be thought-about.” AEPC Secretary Common Mithileshwar Thakur mentioned there’s an pressing have to shortly undertake proper methods to make the most of evolving provide chain reorientation.
“The Indian attire sector is on a excessive progress trajectory and has the potential to outpace international opponents with upscaling of manufacturing capability, channelizing investments into the sector, upskilling of workforce and labour reforms,” Thakur mentioned.
