New Delhi, Feb 23 (UNI) The garment exporters have high expectations from Budget 2007 and have urged certain concession for the industry for this employment-oriented Textile and Garment Sector as the Government is giving high priority to employment generation.
The wish-list of Garment Exporters Association (GEA) from the Budget is that following GEA Pre-Budget recommendations would receive due consideration of the Finance Minister while finalising the Budget proposals.
In a statement issued here today, GEA has made certain pre-Budget recommendations and has called for an overall reduction in interest and corporate tax rates, besides removal of anomalies in excise and custom duties to reverse the recent slow down in garment export industry.
As the international market, which was already highly competitive, has become more tough, GEA in its Pre-Budget recommendations has urged the Government to reduce the transaction cost and grant necessary fiscal and commercial relief for the garment sector of the Textile Industry to enable it to face increasing international competition.
The Association has also urged upon the Government to provide a suitable package of incentives including higher duty drawback rates, adequate and need based funds to exporters at reasonable rate of interest and assured Labour reforms with flexible Labour Laws.
GEA has also requested the Finance Ministry to restore 100 per cent exemption to export earnings under Section 80HHC of Income Tax Act.
It has also requested the Government to exempt exporters from Service Tax and VAT to avoid blockage of capital of exporters, as the procedure for refund is time consuming resulting in unnecessary delays and harassment.
The apex body has also recommended to exempt garment exporters from Fringe Benefit Tax (FBT).
''The Custom duty on import of textiles machinery should be abolished allowing free import of machinery at nil rate of duty. It is essential that an export climate is created where the policies and procedures are made pragmatic and exporters are able to produce export quality goods of international standards with the least procedural and policy regulations.'' GEA has also recommended extension of TUF Scheme till March 31, 2010 with enhanced allocation of funds. The continued and increased availability of Funds would encourage Technology Up-gradation in the Garment Export Industry which is making fresh investments in plant and equipment to expand their capacity to the optimum level to attain economies of scale with the de-reservation of Garment Sector from the SSI reserved list.
UNI
The wish-list of Garment Exporters Association (GEA) from the Budget is that following GEA Pre-Budget recommendations would receive due consideration of the Finance Minister while finalising the Budget proposals.
In a statement issued here today, GEA has made certain pre-Budget recommendations and has called for an overall reduction in interest and corporate tax rates, besides removal of anomalies in excise and custom duties to reverse the recent slow down in garment export industry.
As the international market, which was already highly competitive, has become more tough, GEA in its Pre-Budget recommendations has urged the Government to reduce the transaction cost and grant necessary fiscal and commercial relief for the garment sector of the Textile Industry to enable it to face increasing international competition.
The Association has also urged upon the Government to provide a suitable package of incentives including higher duty drawback rates, adequate and need based funds to exporters at reasonable rate of interest and assured Labour reforms with flexible Labour Laws.
GEA has also requested the Finance Ministry to restore 100 per cent exemption to export earnings under Section 80HHC of Income Tax Act.
It has also requested the Government to exempt exporters from Service Tax and VAT to avoid blockage of capital of exporters, as the procedure for refund is time consuming resulting in unnecessary delays and harassment.
The apex body has also recommended to exempt garment exporters from Fringe Benefit Tax (FBT).
''The Custom duty on import of textiles machinery should be abolished allowing free import of machinery at nil rate of duty. It is essential that an export climate is created where the policies and procedures are made pragmatic and exporters are able to produce export quality goods of international standards with the least procedural and policy regulations.'' GEA has also recommended extension of TUF Scheme till March 31, 2010 with enhanced allocation of funds. The continued and increased availability of Funds would encourage Technology Up-gradation in the Garment Export Industry which is making fresh investments in plant and equipment to expand their capacity to the optimum level to attain economies of scale with the de-reservation of Garment Sector from the SSI reserved list.
UNI
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