Textile industry to oppose proposed 2% excise duty on readymade garments

Mumbai, Feb 2 (KNN) The textile industry mainly the small and medium enterprises are ready to oppose the proposed two per cent excise duty on readymade garments proposed in the Union Budget 2016-17. The duty was levied on garments with retail price over Rs 1,000.

Talking to KNN, General Secretary of The Textile Association of India, Haresh B. Parekh said, “We will oppose this proposed two per cent excise duty on readymade garments.”

He said that the industry had urged Finance Minister Arun Jaitley to reduce the duty but instead of this he increased.

He calculated that prices of readymade garments would now go up by 10 per cent in near future.

However, he said that it is only a proposed duty as of now as the budget is yet to be passed by the Parliament.

The finance minister had announced to levy of two per cent excise on branded garments worth more than Rs 1,000 if input tax credit is not claimed or 12.5 per cent with input tax credit. (KNN Bureau)