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Related Keywords: all kinds of yarn, except polyester filament, finally announces reduction in VAT rate, liablity of the refund will decrease, new rates would be applicable from Friday, notice issued by excise and taxation department, prove very helpful for hosiery trade, Punjab Government, Punjab Spinners Association, relief for ailing spinning mills

The Punjab Government has finally announced reduction in VAT rate on all kinds of yarn except polyester filament, from 6.5pc to 3.63pc. In this regard, the excise and taxation department issued a notification today.

Additional chief secretary (taxation) DP Reddy, who issued the notification on Thursday evening, said new rates would be applicable from Friday.

This will prove very helpful for the hosiery trade and with this, the liablity of the refund will also decrease. Rate of tax on polyester yarn, polyester chips, staple fibre and its waste acrylic fibre will be 6.05 per cent.

Related Keywords: entry tax, Ludhiana, Punjab Government, textile and hosiery industry, Value Added Tax

The Punjab government has apparently decided to impose Non-Vatable Entry Tax on yarn being brought in from other states, including Uttar Pradesh, Himachal Pradesh and New Delhi. As there were repeated requests and memorandum coming from spinners in the state asking to either reduce VAT on yarn manufactured in the state or impose restrictions on import of yarn from other states.

Related Keywords: biggest buyer, blacklist seven jute mills, Indian jute industry, Indian jute mills association, jute bag order, poor quality jute bage, Punjab Government, second hand

The Punjab government had been defaulting on jute bag orders for the past three months, the biggest buyer of jute bags have pointed out that jute mills were supplying poor quality, inferior and second hand bags at almost double the original price resulting in a loss to the tune of Rs 2000 crore every year. The complaint has been forward to Prime Minister Narendra Modi.

The decision of the Punjab government to blacklist seven jute mills of West Bengal and unexpectedly stop supplies from seven other mills has landed the jute industry in the soup.

Related Keywords: joint venture, PIEDMC, proposal, Punjab Government, Quaid-e-Azam Apparel Park, Ruyi group

The Shandong Ruyi Group, a joint venture between Chinese and foreign investors headed by Qiu Yafu, is a hi-tech enterprise, who were planning to invest immensely in the Quaid-e-Azam Apparel Park, a project of the Punjab government is losing interest in the project.
 
Despite several meetings held by its Director Arie Qiu, daughter of the owner with the Punjab chief minister to discuss investment, the company has not yet come up with proposals to demonstrate its interest in the project.
 

Related Keywords: annual jute production, Bengal jute industry, Indian jute mills association, jute bags, Mamata Banerjee, plastic bags, Punjab Government

The Indian Jute Mills Association efforts to reinforce the jute industry which is heading toward debacle seems to have failed as Punjab, the highest consumer of jute bags has deciding not to buy about two lakh bales or about 4 percent of Bengal’s annual produce. This is an immense blow of state’s labour intensive industry that is weighed down by rising stocks, lack of orders, a number of closures and labour violence. The hassled jute industry in Bengal suffered another setback on Friday with Punjab, reluctant on buying jute bags.

Related Keywords: Jute Industry, Punjab Government, Union Food Ministry

The jute industry facing challenge over the sudden demand from Punjab government for 30 kg jute bags instead of the regular 50 kg bags for packaging of wheat and other food grains and jute industry lacks the expertise to produce 30 kg bags.

Moreover, Punjab is the largest purchaser of jute bags in each Rabi and Kharif seasons for packing food grains. Over a third of the one million tonne jute bags produced for government buying is purchased by Punjab through the Food Corporation of India (FCI) in the Kharif and Rabi seasons.