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"Warps and Wefts" of budget |
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2004-7-12
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The budget has the powerloom sector of Surat, the textile hub of Gujarat, rejoicing. Relief is in air as withdrawal of Cenvat means an end to the ''Inspector Raj'' for the industry, at large.
“With the Cenvat now made optional for the powerloom sector, there would be level-playing field for the industry across the country,” according to Federation of Gujarat Weavers'' Association (FOGWA) general secretary Yogesh Mehra.
“In fact, introduction of Cenvat had put the powerloom and weaving sectors in dire straits as the entire procedure was very clumsy and beyond means of owners of small units,” Mehra said.
While the Finance Minister P Chidambaram announced that the powerloom industry has been freed from the Cenvat regime, owners of over 5.5 lakh powerloom units here leapt with joy.
According to Dev Kishen Manghani, vice president, Federation of Surat Textile Traders Association (FSTTA), “The excise duty on nylon fibres should not have been raised from 16 per cent to 24 per cent, perhaps to bring the duty component at par with that of on the polyester yarns but both the polyester and the nylon are no luxury items and well within the means of the commoners.”
The special excise duty of 8 per cent is applicable on luxury items and certainly, both the polyester and the nylon fibres should not have been imposed with it, stated Mehra. In fact, 24 per cent excise duty on polyester yarns should have been reduced to 16 per cent, he added. |
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