|
SIMA criticises textile ministry's `distortion' of fiscal policy
Our Commodities Bureau
Coimbatore, Dec 24 : The textile spinning industry is in an offensive mood. In one of the most hard hitting statements in the recent past, the Southern India Mills Association (Sima) called the Textile Ministry ``a ministry of intentions and no action'' with regard to the distorted fiscal policyAt a hurriedly called press conference here Mr Manickam Ramaswamy, chairman of the representative body of the spinning industry in the south, came down heavily on what he called ``the textile ministry's continued inaction'' on matters seeking urgent solutions. ``Though we have been raising most of these issues for some time now, the ministry is not showing any seriousness to tackle them. The ongoing process of dismantling MFA quotas would pose challenges to our industry in the international markets. The time for correcting distortions in the fiscal policies is now,'' he emphasised.Through Indian Cotton Mills Federation (ICMF), the apex body for the spinning industry, a reduction in excise duty on cotton yarn to 4 per cent (from the present 8 per cent ad valorem), withdrawal of excise exemption to SSI spinners and the duty of 5.50 per cent on imported cotton have been sought. ICMF has sought withdrawal of duty exemption for hank yarn by providing a refund of the duty paid by handloom fabric manufacturers, as the yarn in hank form is widely misused by the powerloom sector. 'Different industry segments undertaking the same industrial activity should attract the same rate of duty. Exemptions lead to unhealthy competition and practices. ``The only alternative left to us now is to resort to stage dharnas and strike work. All pleas are falling on deaf ears. Around 57 units have defaulted in PF payments. Instead of supporting meaningful activities the Centre's policies discourage harmonious existence of all segments in the industry,'' the chairman said. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
|
