New Delhi, Dec 8 (KNN) Voicing concerns of the textile sector comprising primarily of the Micro, Small and medium Enterprises (MSMEs), the Tirupur Exporters Association (TEA) during the pre-budget meeting with the Finance Minister Arun Jaitley submitted a memorandum.

The memorandum urged the finance Minister to look at the different problems that the sector is facing under the new tax regime.  TEA said that the sector must be exempted from the payment of IGST on imported apparel accessories in order to ensure growth of the sector.

Also the government must consider introducing mechanism for proper and timely release of refunds do avoid the capital blockage of the sector, a problem that traders and exporters across sectors have been complaining.

The Association also urged the Finance Minister to facilitate refund of accumulated ITC for job working units along with the permanent deletion of Reverse Charge Mechanism under Section 9(4).

Listing the wishes further, the association urged increased fund allocation for government schemes including Amended Technology Upgradation Fund Scheme (ATFUS).

The sector also requested the Finance Minister to consider a rebate on state Levies and increase in fund allocation for the Market Access Initiative Scheme.  The Association also sought exploring possibility of an increased Duty Drawback Rate in an attempt to ease the blocked central taxes.

Other points raised during the meeting included interest equalization scheme, increased investment limit for MSMEs and amendments in the labour law for the sector. With regard to the pollution control mechanism, the sector called for reduction of GST for Effluent Treatment carried out by CETPs. At present the tax levy on the treatment is 18 per cent, this needs to be reduced to a 5 per cent rate, the association urged.

Raja Shanmugham, President of the Association in a press interview after the pre-budgetary meeting informed that the Finance Minister gave him a patient hearing and assured that the government will consider the raised points pertaining to the growth of the garment sector in the upcoming Union Budget. (KNN/DA)