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CII
seeks uniform excise rate of 8% for garments
PTI
- New
Delhi
The Confederation of Indian Industry (CII) has asked the government
to uniformly tax all garments, including knitted and woven, at the
rate of eight per cent excise duty.
Suggesting that the government should grant in the interim graded
relief to the SSI units for preparing them to be covered under full
MODVAT, the chamber in its pre-budget memorandum said this could
be done by reducing the turnover tax to Rs 50 lakh from Rs 100 lakh
in the first year.
Subsequently, no exemption should be granted to SSIs, it recommended.
Extending the same to spinning, the chamber said a uniform excise
duty of eight per cent should be imposed without any exemptions.
“Moreover
exemptions on doubling, dyeing of cotton yarn, processing of cotton,
blended and synthetic yarns should be removed”, the memorandum
said, adding all process houses processing fabrics with the aid
of power should also be
taxed at the rate of eight per
cent excise duty with no exemptions.
Seeking to introduce complete introduction of CENVAT across the
textile chain, CII asked the government to extend excise duty to
the entire value chain of textiles which currently enjoy exemption.
Referring to the fact that the knitting industry is currently suffering
from fragmentation needing to upgrade the technology, the chamber
has sought dereservation of the knitting sector from SSIs.
CII also proposed reduction of excise duty on POY to eight per cent,
saying the interim fall in revenue can be compensated by imposition
of special excise duty (SED) on POY on a non-MODVATable basis.
Payment of excise duty can be made optional for powerlooms and knitting
sector only after ensuring removal of deemed credit to power processing
houses and removal of all exemptions of excise duty at yarn stage.
It sought some amendments in the Indo-Nepal treaty to
allow customs to offer the
benefits of the treaty if the
inputs originated in Nepal or India.
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