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Mumbai, Feb. 8 Import duty on garment machinery should be charged at a fixed of 5 per cent, said Mr Rahul Mehta, President, Clothing Manufacturers of India (CMAI), in a pre-Budget memorandum to the Union Finance Minister.

“The appreciating rupee has hit Indian exporters more than their Asian counterparts, making the prices of Indian garments less competitive in the market. The recent increase in duty drawback rates helped to a certain extent, but State and corporation levies continue to hinder exports,” said Mr Mehta. He added that these collectively worked out to approximately 6 per cent of the FOB value and that in the ensuing budget, exports should be exempted from all direct and indirect taxes.

He said that since fabric was not included in Value Added Tax, garment units were unable to offset taxes and duties on inputs.

On behalf of CMAI, he requested the Government to exclude garments from the Standard of Weights and Measures Act, remove excise duty on production of garment trimmings and a ban on imports of second-hand clothing. He welcomed the move to remove octroi duty on fabrics and garments, suggesting that it would reduce the delay and hassles in getting raw material from outside Mumbai.

More Stories on : Readymade Garments | Budget

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