It seems that textile industry has very moderate expectations on the fourth coming budget and particularly so, for the polyester and nylon filament sector as conveyed by Mr. V S Chalke, President, Synthetic & Silk Association Ltd (SASMA).
He said, “SASMA in a pre-budget memorandum has already demanded reduction in polyester and nylon filament yarn duties on par with other fibres.”
Currently, polyester and nylon filaments attract 16 percent duties and the reduction sought is to the tune of 8 percent.
Chalke says, “With the ending of textile quotas all fibres are considered on par and thus, application of duties should not be confined merely on the basis of consumption patterns or changes.”
He opined that Chinese filament fabric is cheaper than Indian variety by at least Rs 30, and due to this, Indian manufacturers are facing severe problems at selling there products in domestic markets.
As regards Textile Upgradation Fund (TUF), he said that the association demanded extension of the scheme that is to expire in 2007 to 2010. He said that the scheme had not taken into account the powerloom sectors' investment as the overall power situation in India in different states is neither uniform on costs, diesel, or power tariffs.
Speaking about the general expectations of the budget, he looks forward to depreciation and reduction in corporate taxes. He further adds that there should be adequate financial security provided for retired and senior citizens, as they have nothing to fall back upon.
He is of the view that rather than going after honest citizens, government should focus on recovery of taxes from those who avoid paying them and enlarge the tax net.
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News Team, Fibre2fashion.com
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