Budget 2024 Expectations: The Apparel Export Promotion Council, AEPC, has urged for tax incentives, together with uniformity in GST and elevated curiosity subsidies, to stimulate home manufacturing and bolster India’s exports.
The AEPC has urged for tax concessions to be granted to attire producers who embrace Environmental, Social, and Corporate Governance (ESG) practices, together with adherence to worldwide high quality requirements and compliances.
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The council additionally sought budgetary assist for the branding and advertising of made-in-India merchandise.
The council mentioned that curiosity equalisation charges have been revised downward from 3 to 2 per cent for non-MSME (Micro, Small and Medium Enterprises) producer exporters beneath the curiosity equalisation scheme on pre-and submit-cargo export credit score.
“High cost of capital has been a major bottleneck for the exporting community. AEPC has requested the government to increase the rates under the scheme to 5 per cent for all the apparel exporters,” it mentioned, including it can improve the attire business’s competitiveness within the worldwide market and allow them to avail needed working capital.
Uniform GST
Regarding the Goods and Services tax (GST), it mentioned {that a} uniform tax of 5 per cent solely ought to be levied throughout all the MMF (Man-Made Fibre) worth chain (fibre, yarn and material).
Currently, the MMF GST charge on fibre is eighteen per cent, yarn 12 per cent, and material 5 per cent, leading to unutilised enter credit score and consequent liquidity points for MSME items, the council added.
Further, it urged the federal government embrace trimmings and elaborations beneath Import of Goods at Concessional Rates (IGCR) obligation guidelines.
The operations concerned within the garment export commerce primarily require varied sorts of high quality trimmings and elaborations (tags, labels, stickers, belts, buttons, linings, inter-linings, and many others.) to make sure the specified performance and aesthetics of clothes within the international market.
To keep their model picture, international consumers insist on sustaining consistency and high quality and avoiding the usage of counterfeits.
Any deviation within the specification and high quality ends in the rejection of the cargo, it mentioned.
“Indian apparel exporters are constrained to use only those trimmings and embellishments, which are pre-approved by the buyer and these are mostly required to be sourced from overseas suppliers nominated by the garment buyers,” the council highlighted.
As of now, sure trims and embellishment objects will not be entitled to obligation exemption, it mentioned.
“AEPC has submitted a list of items currently not permitted, such as draw cord, elastic band/tape, metal tab/stopper/clip, velcro tape, leather badge, and D-ring, and has requested these items be included in the list for eligibility for duty exemption,” the AEPC mentioned in a press release.
It has additionally urged that minimal wastage on the charge of 10 per cent ought to be allowed beneath the IGCR guidelines for the import of trimmings and equipment by issuing an acceptable notification.
This will assist attire exporters submit their utilisation particulars on time and get the bond executed on the customs launch.
Budget 2024 Date: The Budget is scheduled to be introduced on February 1.
(With PTI inputs)
