March 10, 2016 6:51 AM

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CMAI seeks withdrawal of excise duty on readymade garments

Clothing Manufacturers Association of India has urged the Centre to withdraw the Budget proposal to levy excise duty on branded readymade garments and continue with the optional duty regime. Finance Minister Arun Jaitley had proposed 2 percent Excise Duty on branded readymade garments and made-up articles of textiles of retail sale price of one thousand rupees and above.<br/><br/>Clothing Manufacturers President Rahul Mehta addressing a seminar in Mumbai said that once the GST is introduced, the whole value chain will be covered by the Duty. He also said that traceability as well as compliance will improve tremendously and implementation problems will also be eased considerably. Mr Mehta further said that introduction of the One thousand cut-off price point for the applicability of Excise Duty will further complicate the process.

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