Representatives of the apparel industry today met Finance Minister Pranab Mukherjee to press for withdrawal of the 10% excise duty imposed on branded clothing and textile made ups.
"We have met the Minister and urged him to withdraw the duty as it would hurt the industry," Federation of Readymade Garments Hosiery Trade of India (FRGHTI) President Ramesh Ahuja said after the meeting.
Manufacturers from all over the country, including Delhi, Kolkata, Ludhiana, Indore and Kanpur urged the minister to withdraw the duty, stating that it would hurt the interests of small businesses and cause fragmentation in the industry.
Although the government had diluted the proposal to tax readymade garments, but the decision failed to satisfy the manufacturers who continue to demand the complete roll back of the proposal.
In the Budget 2011-12, the government had levied 10% excise duty on branded ready-made textiles garments.
However, in the Finance Bill, Mukherjee had proposed to enhance the abatement from 40% to 55% of the retail sale price.
The garment manufacturers in the national capital, Ludhiana and Kolkata are on strike against the proposal.
