President of Textile Exporters’ Association (TEA), A. Sakthivel said the Union Budget 2015 – 16 is a futuristic and pragmatic one which will go a long way in fulfilling the needs of industry and also the people. Finance minister, Arun Jaitley has laid a roadmap for the overall development of economy to enhance the GDP in the forthcoming years, he said.
Mr. Sakthivel said as the upgradation of skill is major requirement for the industry, the budget has addressed the launching of a National Skills Mission through the newly formed Skill Development and Entrepreneurship Ministry.
He was also happy to note the association long requisition for exempting service tax imposed on CETPs for services provided by them for treatment of effluent was addressed in this budget and this will specifically benefit Tirupur Knitwear Sector.
Mr. Sakthivel said it was requested in the pre-budget memorandum for import of synthetic / blended / specialty fabric of cotton under the Export Performance Certificate, a maximum of 3% of the license and he hoped it would be addressed in the envisaged new Foreign Trade Policy. 3% Interest Subvention on Rupee Packing Credit was expired in 2014 which was not addressed in the Budget and he hoped same would also be considered in the new Foreign Trade Policy.
As the service tax has been increased to 14% from 12.36%, such refund given to knitwear garment exporting units has to be hiked from existing 0.18% to 0.75%, Mr. Sakthivel said.
Welcoming the allocation of fund separately for Technology Upgradation Fund Scheme (TUFS), he said IETPs and CETPs should be included under TUF scheme as more modernization will happen in the plants and also said that the Interest Subsidy and Capital subsidy for the processing machinery have to be increased from the current level of 5% and 10% to 8% and 25% respectively to upgrade machinery in the weakest link of the textile industry.