Tirupur Exporters’ Association (TEA) has requested the Centre to reduce the customs duty of man-made fibres to zero per cent as against the existing five per cent, as has been made for cotton.
In a pre-budget memorandum submitted and discussed with Union Textile Minister Dayanidhi Maran recently, the hosiery exporters requested that the duty on special machinery for manufacture of synthetic garments and also processing of fabrics be reduced to zero per cent so that more investment could be attracted in the sector, which has a major global market.
TEA President A. Shaktivel in the memorandum wanted the government to provide five per cent Interest Reimbursement Plan and 15 per cent capital subsidy in the Technology Upgradation Fund scheme, for specified machinery required for manufacturing of synthetic garment and processing of fabrics.
The association also appealed to the Minister to exempt export related activities from service tax instead of attempting to refund it to exporters.
The exporters should get three per cent compensation against the levies like octroi and other State taxes and transaction tax till the introduction of GST.
Other issues discussed included increase in the duty draw back rate by five per cent from the existing 8.8 per cent for cotton knitwear garment exporters and increase of investment limit in plant and machinery of SME units from Rs.10 crore to Rs.25 crore, to make them more competitive, Shaktivel said.