 "Hike in service tax will make industry uncompetitive: AEPC")
Unhappy with certain Budget proposals, Garment exporters body AEPC today said increase in service tax would make the industry uncompetitive in the global market.
Apparel Export Promotion Council (AEPC) Chairman Virender Uppal requested Finance Minister Arun Jaitley to re-consider their suggestions such as giving 3% interest subsidy for the sector.
"Full taxes are not refunded by the government for exports as such further increases in excise duty to 12.5% and service tax to 14% would make the industry further uncompetitive," Uppal said in a statement.
He urged the ministry to take a re-look at their suggestions submitted before the Budget, as the sector is labour intensive and generates Rs 1 lakh crore revenue through exports.
Uppal also suggested an increase in the rate of duty on imported inputs used for export purposes.
The Finance Minister has proposed increase in service tax to 14% from 12.36%.
Apparel Export Promotion Council (AEPC) Chairman Virender Uppal requested Finance Minister Arun Jaitley to re-consider their suggestions such as giving 3% interest subsidy for the sector.
"Full taxes are not refunded by the government for exports as such further increases in excise duty to 12.5% and service tax to 14% would make the industry further uncompetitive," Uppal said in a statement.
More From This Section
The garment industry, he said, was expecting favourable announcements in the Budget.
He urged the ministry to take a re-look at their suggestions submitted before the Budget, as the sector is labour intensive and generates Rs 1 lakh crore revenue through exports.
Uppal also suggested an increase in the rate of duty on imported inputs used for export purposes.
The Finance Minister has proposed increase in service tax to 14% from 12.36%.