Industry waits for tax cuts, GST this fiscal year

LUDHIANA: With slogans like Make In India and talk of investment doing the rounds, the industry is nursing high hopes from this budget. The Times of India talks to industry leaders to ascertain what it is they really want.
According to Vinod Thapar, chairman, Ludhiana Knitwear Club, the primary demand of the industry is implementation of GST. Apart from this, the industry wants import duty to be scrapped to take on competition from Sri Lanka, Bangladesh and China.
“We have an import duty of 18.9%, while there is no import duty in Bangladesh. Bank interest rates in neighbouring countries are cheaper. The highest rate is 9% and in our country the rate of interest starts at 12%. This needs to be reduced to save the industry and help them counter international competition,” he said. He recommended scrapping of service tax of more than 12% on business associations, saying they are not working for profit or other monetary advantages.
Akhil Jain of Madame also said the government needs to strengthen the manufacturing sector and provide them with the support needed to improve quality and tackle problems like labour shortage, especially that of skilled labor. “Expectations from the government are very high and we hope the hosiery and textile industry will be benefitted. There is a need for a special package for the industry. Implementation of Goods and Services Tax is much awaited. There is a need to provide a level playing field to the Industry not only in comparison to other countries but also other states,“ said Sandeep Jain, director, Oswal Woolen Mills.
“Getting some concessions on the lines of tax benefits to neighboring countries like Himachal Pradesh, Uttarakhand, Jammu and Kashmir is important. Central sales tax should be reduced from 2% to 1% and implementation of Goods and Sales Tax, which has been hanging fire for a long time, should be implemented. Facilitation center for hosiery and textile Industry should be opened ,“ said Kuntal Raj Jain, MD, Duke Fashions. “There are many expectations from the government. Steps should be taken to check illegal imports through misuse of SAFTA” said Kamal Oswal, MD, Nahar Enterprises.