To protest the 10 per cent excise duty on 45 per cent of the MRP value instead of 60 per cent, the garment manufacturing industry has announced an indefinite strike from March 24. Over 100,000 garment manufacturers will also hold “non-stop protest rallies” across the country.
Finance Minister Pranab Mukherjee had recently proposed excise duty of 10.3 per cent payable by manufacturers on 45 per cent of the MRP value. However, the garment manufacturing industry has not accepted the proposal.
“This is no relief, it's just a correction of a wrong calculation of the ministry. Manufacturers’ selling price is normally 35 to 45 per cent of the MRP. It is well known that excise duty is a ‘tax on manufacturing’, hence this announcement is just a correction to make excise levy on the manufacturer's selling price. This is no relief and the excise duty is still at 10.3 per cent of the selling price of manufacturers,” said Sanjay Jain, president, Kolkata Garment Association and vice president of Federation of Hosiery Manufacturers Association of India.
The industry feels there has been a 10 per cent plus annual inflation in food articles and a 30-50 per cent in clothing in the last one year. “The common man was looking for relief from the same. However, over night the government has gifted another 10-15 per cent inflation by imposition excise duty. Branded garments are not just for the rich and elite. Even the garments sold on the road are branded. It is against consumer interest to promote unbranded clothes, as there is no assurance of quality,” Jain added.
