Reduction in excise duty on all manmade fibre suggest CITI

Globally, manmade fibre accounts for 70 percent of the fibre consumption while in India; it is less than 30 percent. The Indian textile industry to boost use of synthetic fibre want reduction in excise duty on all manmade fibre and filament from the existing 12 percent to 6 percent. As reduction in excise duty in manmade fibre will lead to increase in demand.

In a pre-budget memorandum, the Confederation of Indian Textile Industry to cover the revenue loss has recommended that the government should reduce the excise duty, it should introduce two percent mandatory excise duty on all value added products that are manmade fibre-based.

The duty reduction on raw materials such as PTA (purified terephthalic acid) and MEG (mono ethylene glycol) should follow as a logical sequence to avoid an inverted duty structure.

According to the memorandum, the customs duty on PTA and MEG should be brought down to zero percent and the customs duty on polyester fibre and filament should be increased to 10 per cent.

In India, the per capita consumption of manmade fibre is nearly three kg as against the world per capita consumption of 8 kg, according to the memorandum.

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