Textile industry requests sops from Central government
Seeks tax relief for three years for textile traders, abolition of duty on PTA
Hyderabad: As the day for presenting the Union Budget for 2021-22 is nearing, the appeals from different sections of the society are pouring in. The expectations are high from traders, especially in textile, readymade garments and fashion industry.
They have been facing many challenges since March 2020, initially because of the Covid-19 lockdown and later on due to lack of demand, job cuts, capital issues, among others. Srikanth, a Hyderabad-based Classic Polo outlet owner, says: "The pandemic has impacted our business, which is down by 40 per cent. Our expenditure, however, remained the same. Our capital is drying out and we are not able to invest in new products."
He feels that govt should announce some measures for textile and garment industry. He says, "Cotton prices have gone up by 18 per cent in international market recently, which is an extra burden for manufacturers. Hence, small and medium manufacturers now need financial support from government without the interest burden."
Telangana State Federation of Chambers of Commerce and Trade (TSFCCT) president Ammanabolu Prakash expects the government to help the traders especially in textile and garment businesses, who have been facing many challenges ranging from lack of demand to capital woes. He says, "The Union Budget should announce three years' income tax rebate for traders who are affected by Covid-19 pandemic. The Government should provide special financial package to small and medium traders and give bank loans at 6 per cent for big and corporate traders. The way the loans are being offered to MSMEs under SIDBI now," he adds.
Prakash further says, "Textile industry has been demanding abolition of duty levied on Purified Terephthalic Acid (PTA) to remain globally competitive.