Confederation of Indian Industry (CII) is pressurizing the Karnataka Government to provide the textile and garment sector with tax breaks on exports up to 2011 and eliminate value added tax (VAT).
CII also suggested that VAT on accessories such as machinery spares, buttons, printed paper labels, fusible tapes, hook and eye thick, polyester interlining, industrial type vacuum ironing table with press and other products should be reduced to four percent from 12.5 percent.
Entry tax on capital goods, raw materials and packaging material, and the special entry tax on capex must be also excused.
Power rate should be fixed with an exemption on tax of power charges.
For enhancing the quality of labour, CII also recommended that the Essential Service Maintenance Act and the Contract Labour Exit Clause should be made applicable to the garment industry.
CII suggests that the maximum weekly working hours can be raised to 60 hours, including 12 hours of overtime, which becomes necessary during peak hours and that women should be allowed to work beyond 10:00 pm.
Textile training centres should be established in satellite towns such as Hubli, Mangalore and Mysore.
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