While major retailers on Monday observed one-day strike to protest against the 10 per cent excise duty on readymade garments proposed in the Union Budget, the regional major retailers did not participated in the protest. The regional major retailers, including Saravana Stores, Nalli and others, opened their shops as usual on Monday.
According to a major retailer, “The proposed duty will be applicable only for those who manufacture and sell their own brands. However, retailers like us sell both branded and unbranded apparels. So we did not see a point to participate on the strike.”
Calling for the nation-wide strike, Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI), said earlier, “Excise duty on readymade garments is uncalled for. With the government planning to introduce GST next year, we have to switch to a new tax regime. There is no logic in introducing excise on readymade garments now. The government should understand that the industry is reeling under high input costs. Any further increase will make things worse.” In this connection, CMAI has decided to handover a memorandum to withdraw the excise duty and save the garment industry to the Chief Minister of Tamil Nadu and to the Union Textiles Minister.
Imposing excise duty would affect wholesalers and retailers, apart from manufacturers, according to CMAI.
