Coming as quite a good news for the textile industry in Haryana, the state government, in its Budget, announced exemption of tax on cotton yarn manufactured in the state.
Announcing a no-new tax budget, Haryana Finance Minister Captain Abhimanyu made the textile industry particularly happy with its initiative in regards to cotton yarn manufacturing. Industry experts feel that this has been a good step by the government, since this has been pending from several years now.
Speaking to Apparel Resources, Panipat Exporters Association President Prem Vij said, “We have been demanding for this from many years now. It had been causing a lot of paper work and blocking cash flow. But that will not happen now.”
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In an another major move, the government has reduced the tax rate on footwear, priced above Rs 500 (MRP), from 12.5 per cent to 5 per cent, and also exempted shoe uppers from VAT. This will encourage setting up of more footwear industries in the state.
The government planned to promote and support khadi and village industries, start-ups and MSMEs to provide entrepreneurship opportunities and generate employment in rural areas.
It has been envisaged to impart training to around 1.15 lakh youth per year under Haryana Skill Development Mission (HSDM). An outlay of Rs 25 crore has been proposed in 2016‐17 for HSDM as against Rs 9 crore in 2015‐16. The government proposed an outlay of Rs 828.80 crore in BE 2016‐17 for Industries and Minerals, which is 325.1 per cent higher than RE 2015‐16 of Rs 194.98 crore.
