Mumbai, Jan 24 (KNN) Textile Association (India) is expecting a lowest tax structure slab for the MSMEs in the sector in the upcoming Union Budget 2017.

Textile Association told KNN that the demand of lowest slab has been put before finance ministry as according to association said the higher interest rate further affects the volumes.

“Industry has asked for 5% level which is acceptable and it will also help increase the volume of manufacturing”, added Arvind Sinha, National President of Textile Association (India).

Presently the rate is about 10 to 12 percent but, “we are demanding to reduce it to nearly 7 to 8 percent,” added Sinha.

According to him, industry expects the interest rate to be reduced as MSMEs are getting continuous business from countries like Vietnam, Malaysia.

“Government should apply low interest rates for export and money should be available at a reasonable price,” said Arvind.

Besides various appeal from the oppositions, this year the government is all set to announce Budget a little earlier, i.e. 1st February, 2017.  (KNN)