President of Tirupur Exporters’ Association (TEA), Raja M Shanmugham, recently had a meeting with textiles minister, Smriti Irani, to discuss GST, rebate on state levies, labour law reforms and setting up of knitwear board.
He urged entire textile sector may be placed in the lowest slab of the GST because of its MSME dominant nature and the slender margins so that industry can absorb the levy without any significant impact on the business. Also, the benefits announced in the special package including rebate on state levies, EPF benefits for new employment are yet to be passed on to the exporters.
The president discussed the problem of job workers being denied the issue of EPCG licences for capital goods imports and requested to resolve this issue so as to reinstate climate of investment in micro and small industries.
Additionally, he mentioned the immediate implantation of Optional ESI/EPF contribution for employees below a certain threshold minimum wages. He also demanded a focused and dedicated agency for the knitwear sector serving as a catalyst for rapid growth of the segment.
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