Recently, NITI Aayog organised a meeting involving textile industry organisations, during which representatives emphasised the urgency of regulating the increasing influx of apparel imports from countries like Bangladesh, Sri Lanka, and others.
The nation’s think tank held discussions with representatives from the textile industry, centering on addressing tax anomalies throughout the complete textile value chain. The primary objective was to address and eliminate tax-related obstacles that hinder the industry’s growth and development.
The meeting witnessed the participation of industry association representatives, including CITI, SIMA, CMAI, PDEXCIL, TEXPROCIL, NITMA, and others.
During the meeting, the representatives highlighted various critical issues. These included concerns about import duty on cotton, challenges related to the inverted duty structure in the MMF textile value chain, issues with textile processing and job work, as well as concerns regarding import duties on textile machinery.
The industry is collectively urging for an increase in the Basic Custom Duty (BCD) from 5 per cent to 10 per cent to effectively control the rising imports of MMF yarn.
Furthermore, they are advocating for the exemption of job works in the MSME sector from the ambit of GST. Additionally, the representatives emphasise that tax-related policies should remain consistent throughout the financial year and should not be altered midway.
NITI Aayog has welcomed additional suggestions from the industry and expressed their commitment to supporting policy decisions that would be advantageous to the textile industry as a whole.
