Apparel exports has a lot at stake in the Budget 2006-7
28 Feb '06
2 min read
Following is the list of points related to apparel industry featured in the India union Budget 2006-2007 announced today by the Finance Minister P Chidambaram.
They are:
Ø The Textile industry having employment opportunities identified as one of the five sectors under 'manufacturing sector'.
Ø The allocation for Technology Upgradation Fund enhanced from Rs. 435 crore to Rs. 535 crore. Rs. 189 cores provided integrated Textile Park Scheme.
Ø Provision for the handloom sector increased from Rs. 195 crore to Rs. 241 crore.
Ø Indirect tax, Customs - Peak rate for non-agricultural products reduced from 15% to 12.5%. Duty on packaging machines reduced from 15% to 5%.
Ø CVD of 4% to be imposed on all imports; full credit to be allowed to manufacturers of excisable goods.
Ø Rates on clearances by EOUs to DTA adjusted at 50% of Basic custom duty plus excise duty on like goods.
Ø The 3% duty free import of trimmings and embellishments (EPC Scheme) continued for the year 2006-07.
Ø Reduction of : excise duty on all man-made fibre yarn and filament yarn from 16% to 8%; import duty on all man-made fibres and yarns from 15% to 10%; import duty on raw materials such as DMT, PTA and MEG from 15% to 10%.
Ø Service Tax : Service tax rate increased from 10% to 12%.
Ø Direct Taxes : No change in Corporate income tax; no new
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