Branded clothing to come cheaper
Exempted from 10% Excise Tax levied last year.February 28, 2013 | comments ( 0 ) |
The much speculated and debated Union Budget 2013 has finally here. Branded apparels will become less expensive as there will be no excise duty them. 10 per cent excise duty was levied on 30 per cent of the maximum retail price last year. Textile ministry has been allocated Rs 50 crore for establishing apparel parks.
Ashish Dikshit, CEO, Madura Fashion & Lifestyle shares, "The apparel & textile industry has witnessed a significant slowdown in the last 2 years due to combined impact of inflation & excise duty. The new excise regime proposed in this budget would significantly ease the cost pressures in the industry. It should also bring cheer to consumers and encourage greater consumer spending through stabilization of prices in the category.”
Ramesh Poddar, Chairman & Managing Director, Siyaram Silk Mills Ltd articulates, "The union budget had addressed several issues in the textiles sector including investment target of Rs 151,000 crore Technology Upgradation Fund Scheme. The zero excise duty for cotton and manmade yarn, fabric is welcome and hope that it will give India textile industry an edge in the global clothing market. Siyaram Silk Mills, which derives 83% of its revenue through fabric is expected to derive benefit from the excise duty sops offered.”
Harkirat Singh, MD Woodland says, "As a part of the Indian retail sector we feel that the budget 2013 will have a positive impact on the industry, the exemption of excise duty from readymade garments was expected. Additionally, the reduction in customs duty for Plant & Machinery for leather & footwear industry is a pleasant surprise and will lead to the reduction in cost of production and this marginal reduction will give a boost to the industry. It is a good budget that is welcomed by the industry."
Richa Kar, CEO, Zivame.com said, "This is good news for all retailers and manufacturers in the fashion apparel space. Cotton is an essential component in the making of most lingerie due to its breathability, versatility and durability. Customers will definitely be happy as cotton lingerie will be available at lower prices. And businesses can reap the benefits of increased demand and lower cost of production.
With reduction in custom duty on leather, the footwear industry views this as a positive step.
Sahil Malik,MD, Da Milano shares, "Not pompous and has good impetus drivers for growth. Specific to leather sector the reduction in custom duty on specified machinery for leather and leather products including footwear from seven and half to five percent is a step in the right direction. Shall help update technology and bolster quality. Reining in fiscal deficit and controlling inflation will rub out well for the retail sector too. A balanced budget from corporate prospective. Wish list for roll back would be the surcharge at above 1 cr Income Tax bracket."
Jaiprakash Desai, CEO, Metro Shoes for footwear retail says, "The Budget is disappointing for the Footwear Industry. We were expecting parity to the industry at par with comparable industries, at least in the excise duty. The proposal to charge higher surcharge on domestic companies whose taxable income exceeds Rs. 10 crore is like penalizing the efficiency.”
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