The Hindu Business Line : Tirupur exporters place demands before Finance Commission

Coimbatore, June 5 The Tirupur Exporters’ Association has sought the Government support for creation of a market development fund exclusively for the promotion of exports from this knitwear hub.

Advocating the need for allocation of Rs 1,000 crore towards such a fund, the General Secretary of TEA, Mr G. Karthikeyan, said: “It could be used for participation in international trade fairs, attending buyer-seller meets abroad and in India, and export promotion seminars, apart from organising the India Knit Fair in Tirupur.

“The participants should be given 50 per cent subsidy of the actual charges incurred.”

Mr Karthikeyan placed this and a couple of other demands from the TEA before the 13th Finance Commission on Thursday in Chennai.

Dedicated power station

Sharing details of the deliberations the Commission had with the trade and industry, the TEA General Secretary said, “We have asked for a separate dedicated power station in Tirupur, widening of roads connecting Tirupur and Tuticorin and four-laning from Chengapalli to Walayar check post (Tamil Nadu border), and exemption from VAT for exporting units, among others.

“We have requested the Finance Commission to consider addressing the basic infrastructure needs and recommend allocation of funds.

“We have also reiterated the industry’s demand for the marine discharge project and recommended allocation of Rs 500 crore for executing this project successfully.”

On seeking exemption from VAT, he said: “The taxes paid by the exporting units are refunded at a later date.

Vat exemption

“We have, therefore, sought exemption from payment of VAT.

“The Government could alternatively evolve a scheme whereby the un-remitted State taxes (of 3 per cent) are refunded to the exporters.

“The Centre could then reimburse the State taxes paid by exporters and recover it from the payments due to the States as per the devolution formula approved by the Finance Commission.”

The association sought allocation of funds for construction of working women’s hostels in five places in Tirupur to accommodate at least 5,000 workers, in line with the State Government’s budget proposal of construction of hostels for thousand workers in Tirupur.

More Stories on : Exports & Imports | Taxation | Knitwear & Hosiery | Tamil Nadu

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