Industry & Economy
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Readymade Garments
GMCCI plea to scrap entry tax on garments
Our Bureau
BANGALORE, Oct. 10
THE garments and retailing committee of the Greater Mysore Chamber of Commerce (GMCCI) has made a representation to the State Government for the withdrawal of the two per cent entry tax levied on readymade garments with effect from October 1 this year.
The Government decision on entry tax came along with the move to retain sales tax at 4 per cent.
The GMCI representation recalled that the budget for the financial year 2002-03 had abolished entry tax on all commodities.
The philosophy of the Government was simplification of tax collection and administrative efforts by removing multiple forms of taxation.
"In this context, the introduction of entry tax on readymade garments has come as a shock to the industry. The readymade industry has been going through tough times and it will find it difficult to absorb the additional burden of an entry tax pegged at two per cent," a GMCI statement said.
The levy of entry tax will also lead to administrative complexities, which has to be carried out by both the manufacturers and traders as well as by the Commercial Taxes Department, the statement added.
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