Financial Daily from THE HINDU group of publications
Sunday, Feb 10, 2002
Financial Daily from THE HINDU group of publications Sunday, Feb 10, 2002 |
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Industry & Economy
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Textiles Knitwear, powerloom sectors oppose widening excise net Our Bureau
COIMBATORE, Feb. 9 THE knitwear sector and the decentralised powerloom weavers have flayed the move to widen the excise duty net to cover their industries. Members representing these two sectors have said that it was an ill-advised move and have made known their opposition to the Union Textile Minister, Mr Kashiram Rana. The knitwear industry members argue that considering the present status of the industry, which comes under tiny/small sized enterprises, administering excise duty collection system would prove costly. Over 90 per cent of knitwear industries products are for exports and hence they qualify for excise duty rebate. A major chunk of knitwear units are engaged in job work manufacture. These factors will make revenue collection a difficult task for the Excise Department and at the same time impose huge cost burden on the tiny units in complying with excise regulations including managing their excise account books, the Tirupur Exporters Association (TEA) representing the knitwear industry has told the Minister. The powerloom industry represented by the Powerloom Development and Export Promotion Council (PDEXCIL) has pointed out that any move to impose excise duty on grey fabrics with a view to completing the `Cenvat' chain may be preferable in the long term but it will adversely affect the industry in short term as the time is not opportune to impose any additional excise burden. With the entire textile industry crippled in the face of high operating costs due to steep power tariff, fiscal burdens and liberal imports, powerloom sector was no exception. Over 40 per cent of the units have closed down their operations. .
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