The Gujarat textile manufacturers are looking ahead to tax cuts in the ensuing union budget which will help the industry come out of its current crisis. Finance minister, Mr. Arun Jaitley will present his first full year budget on February 28.
South Gujarat Textile Processors Association president, Mr. Jitendra Vakharia said that industrialists of Surat are currently facing crisis due to the rise in prices of raw materials like yarn and colour chemicals. A favourable budget will bring relief for one-and-a-half million people associated with the industry.
This time they expect the government to do away with anti-dumping duty and excise duty of 12 per cent. For polyester, which is worn by the middle-class people, it should be nil like it is for cotton.
Mr. Vakharia hoped for relaxation in prices of acquiring land. If the Prime Minister allots land to them at reasonable prices for setting up industries, it will lead to cluster development and speedy revival of Surat’s textile industry.
Investors and manufacturers have long advocated the GST as a way to simplify taxes while broadening the tax base, adding as much as 2 percentage points to economic growth in the country.