Weavers seek abolishment of customs duty

The Federation of Indian Art Silk Weaving Industry (FIASWI) has presented a pre-budget memorandum to the government focusing at mitigating the existing difficulties in the sector.

The federation wanted the government to waive off the 10 per cent customs duty on the man-made filament yarns as they felt that such a move will allow them to buy raw materials at international prices.

The memorandum also suggests for a review on anti-dumping duty on the man-made filament yarns. It says, "The government should take a judicious and cautious decision to levy or not to levy the anti-dumping duty."

The synthetic industry body has asked for the abolition of Textile Committee Cess (TCC), which is collected at every stage of production. Suggestions for cutting down the customs duty on textile machineries from 10 per cent to 5 per cent was also made.

The body also suggested that the burden of paying service tax should be on the transporters and not on the weavers and processors.

It wanted the Value Added Tax (VAT) on textiles to be deferred until central sales tax is brought down to zero and states get their share of Additional Excise Duty (AED) from the Centre. Presently, there is no VAT on textiles, but certain states have brought VAT on textiles indirectly.

On the excise duty front, the federation has suggested that the duty on cellulose and man-made fibres and filament yarns should be reduced to half from the existing eight per cent so that it can be at par with cotton yarn, which has duty of four per cent.

The federation also wanted the Technology Upgradation Fund Scheme (TUFS), which will end on March 31 next year, to be extended for five years.

In the powerloom sector, FIASWI has suggested the investment limit under 20 per cent capital subsidy to be increased to Rs 5 crore from the existing Rs 1 crore.