“The government should align the duty rates so that textile manufacturers can utilize the unused funds,” he said. “Custom duty of 7.5 percent charged on import of PTA (Purified Terephthalic Acid) should be scrapped and additional 4 percent customs duty levied on textiles and clothing should be refunded to exporters,” Dhoot added.The study also points out that existing schemes meant for various segment of the textile industry needs to be brought under a single umbrella to minimize procedural and bureaucratical hurdles. “The textile industry requires fresh investment in capacity expansion, modern technology and machine installation. The sector attracts lowest level of foreign direct investments in spite of the fact that 100 percent FDI is allowed in it under automatic route,” Dhoot added. Source: NDTV Profit.com
Date:6/16/2008
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