CEO speak: Rajendra J Hinduja, managing director, Gokaldas Exports
Incentives: The way forward
Countries like Bangladesh and Vietnam are giving us tough competition.
An increase in the duty drawback rate from 9 per cent to 15 per cent, restoration of interest subvention at 4 per cent and 50 per cent tax exemption on income from exports, as was three years ago, should be restored to tide over the bad times.
Chamber speak: FICCI
It is important to reduce the customs duty on machineries and their spare parts used by the man-made fibre industry.
The government should abolish special additional duty on imports, while it should also look at providing equality in excise duty structure between synthetic fibre and cotton.
Introduce a technology upgradation fund scheme for the textile engineering industry.
Allow indigenous manufacturers of textile machines to import rubber components, seamless steel tubes and ceramic components at a duty rate of 7.5 per cent.
Reduce customs duty to 5 per cent on accessories, parts and components of textile machines falling under tariff heading 8448.
Expert view: Sachin Menon, executive director, Tax & Regulatory Services, PricewaterhouseCoopers
The Budget should encourage massive modernisation and new investment in the textile sector.
It should look at giving suitable fiscal incentives both under direct and indirect tax proposals such as accelerated depreciation and nil customs/ excise levies on capital goods.
Budget 2009: Complete coverage