The Confederation of Indian Textile Industry (CITI) today demanded the government reduce excise duty on man-made fibres to eight per cent in the coming Budget, to boost the sector’s growth.
In a memorandum to Finance Minister P Chidambaram, the body said: “This may not lead to revenue loss, since demand and, therefore, production will increase, leading to increased revenue.”
CITI said the increasing cost of production in China had opened huge opportunities for the Indian man-made fibre-based textile industry to expand market share.
It has also sought abolition of customs duty and special additional duty on man-made fibres, as it would help the industry to source fibres from global markets during a time of shortage or a sharp increase in domestic prices.
The body also wants an increase in the exemption limit for service tax to Rs 15 lakh from the current Rs 10 lakh. Besides, it has demanded reduction in the rate of service tax to 10 per cent from 12 per cent now.
