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Branded garments -- AHEA seeks cut in 16% excise duty
Our Commodities Bureau
Chennai, March 26 : The Apparels and Handloom Exporters Association (AHEA) has requested the finance ministryto remove the 16-per cent excise duty levied on branded garments in the Budget. Says association secretary Reshma Rao: "This move will definitely hamper the competitiveness of the Indian apparel industry as it will increase the cost of the end product at least by about 20 to 25 per cent." Already the industry is facing heavy competition from textile manufacturers in other countries especially from China and this notification of the government will worsen the position of the manufacturers of branded garments, she added.The branded manufacturers are already paying excise duty at the fabric stage, accessories stage and wherever applicable and by virture of this recent notification the manufacturers will be paying again on the total cost of the product, she said. This means the manufacturers will be paying excise duty on labour, other overheads and also on their profits, she added. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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