Related Keywords: attract excise duty, cotton fibres attract none, distorted domestic consumption pattern, duty disparity, Goods and services tax regime, GST, hurting export competitiveness, level playing field vis a vis cotton textiles, manmade fibres, policy maker, prevent domestic producers from scaling up operations, Textile Industry
At present, man-made fibres attract a 12% excise duty while cotton fibres attract none. This duty disparity has distorted the domestic consumption pattern in favour of the cotton fibre, divergent to the global trend. The man-made textile segment long neglected by policy makers, finally expects a “level-playing field” vis-a-vis cotton textiles as the country braces for a goods and services tax (GST) regime.
