Industry & Economy
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Textiles
Minister assures excise relief to garment makers
Our Bureau
NEW DELHI, April 3
THE Minister for Small-Scale Industries, Dr C.P. Thakur, will meet the Union Finance Minister, Mr Jaswant Singh, to emphasise on the need to withdraw the proposed 10 per cent excise duty on readymade garments.
Dr Thakur gave this assurance himself to a delegation of Laghu Udyog Bharati (LUB), which called on him on Thursday. During the meeting, the delegation explained to the Minister the adverse impact of the proposed excise duty levy on readymade garments.
In a statement, LUB said that the proposed levy of excise duty was in gross violation of excise exemption up to Rs 1 crore given to the small sector by the Prime Minister, Mr Atal Bihari Vajpayee.
The delegation told the Minister that the small-scale readymade garments manufacturers comprised a large number of tiny units having 10-15 machines in their homes and catered to the needs of the lower middle and lower classes of society.
"The excise duty which starts from Re 1 will ruin the readymade garments industry and force the closure of thousands of small-scale units. At the same time, the masses will have to purchase garments at higher prices.
In the event of closure of these small units, branded goods made by multinational companies will have a field day," the LUB said.
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