A package of incentives through rationalisation of excise duty in order to have a moderate rate structure and eliminate evasion has been proposed by Finance Minister Jaswant Singh.
These include reduction of excise duty on polymer filament yarn from 32 per cent to 24 per cent, from 16 to 12 per cent in case of spun and other filament yarns and from 12 per cent to eight per cent on all knitted cotton fabrics and garments, he said while presenting the Budget for 2003-04.
While excise duty on all woven fabrics and other knitted fabrics and garments comes down from 12 per cent to 10 per cent, excise duty on pure cotton yarn is retained at eight per cent. Garments and fabrics manufactured by non-profit charitable institutions would be exempt from excise duty.
To encourage modernisation of the textile industry, customs duty on a large number of textile machinery and their parts is being reduced from 25 per cent to five per cent. Customs duty on apparel grade raw wool would also be reduced from 15 per cent to five per cent and on paraxylene from 10 per cent to five per cent.
The finance minister also announced a Powerloom Package for Modernisation. This included expansion of Technology Upgradation Fund Scheme to cover modernisation of powerlooms, a new powerloom workshed scheme to create better working environment and increase productivity and a special insurance scheme under which all powerloom workers would be covered against death, accident and disability.
PTI