Duty reduction likely in budget for textile machinery & man-made fibre
24 Feb '07
1 min read
Excise duty relaxation on man-made fibre products and Customs duty reduction for textile machinery imports is likely to be made for the textile sector.
Technology Upgradation Fund Scheme (TUFS), scheduled to expire in March this year may be extended by another three years, with some adjustments in the interest subsidy scheme in the Budget, sources said.
Textile value chain from yarn to garments presently attracts excise duty of eight percent for man-made fibre products and four percent on cotton products.
Excise duty on man-made fibre is likely to be made at par with duty structure on cotton and other natural fibres in the Budget, sources said.
Customs duty on machinery between five to 12.5 percent may possibly be reduced in Budget due to machinery shortages faced by textile industry.
The textile and apparel industry had approached Confederation of India Textile Industry to reduce custom duty to five per cent on all textile machinery, components and spare parts, besides removing duty on machinery for processing and clothing industry.
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