Indian Textile Accessories & Machinery Manufacturers’ Association (ITAMMA) submits Pre-Budget Memorandum for 2011-12.FISCAL REFORMS
I) EXCISE DUTY
• Excise duty on all items of textile machinery at 8%, there should be no exemption
• Excise duty on all parts, components and accessories of the textile machinery should be less than complete machinery i.e. at the level of 4%.
II) CUSTOMS DUTY :
• Floor level of customs duty on capital goods should be at 7.5%.
• The rate of duty on raw-materials, parts, components & accessories should be less than that on complete machinery, in general, at least to 5%.
• Reduce import duty on dedicated parts, components and accessories of shuttleless looms & other hi-tech machines which are not made in India so far, from 5% to zero duty.
III) POLICY MATTERS :
• Uniform treatment to the domestic suppliers of machinery to EPCG licence holders and 100% EOU as both are Deemed Export.
• Imported second-hand textile machinery should not be given subsidy under the Technology Upgradation Fund Scheme and its derivatives namely 20% CLCS and 15% CLCS Scheme, in the name of modernisation
• Ban on import of second-hand shuttleless looms with weft insertion rate less than 750 mtrs. per minute.
• Tax break for a period 5 years for any unit manufacturing hi-tech item of textile machinery with or without foreign collaboration.
Read more on Pre-Budget Proposals 2011-12 from ITAMMA @ Fibre2fashion.com
