India Textile Ministry Requests The Cabinet To Approve The National Fiber Policy As Soon As Possible.

In order to end cotton and Man-made fiber (MMF) the tax difference between India and the Ministry of textiles will soon communicate with the cabinet on the issue of national fiber policy.

According to sources, the Ministry of textiles has issued a cabinet notice to the relevant ministries and commissions on the draft national fiber policy, such as the Ministry of agriculture, the Ministry of chemical industry and the Ministry of Commerce, in order to solicit their views.

The draft policy says that although the excise tax on man-made fibres and textiles has been greatly reduced, the levying level of man-made and man-made fiber textiles is still high.

The draft said cotton was exempt from consumption tax, but man-made fiber was levied 8%. Excise tax 。

In addition, 8% of the central value-added tax is levied on man-made fiber textiles, while cotton textiles can choose 4% of the central value-added tax. As long as the consumption tax of man-made fibres and man-made fiber textiles is reduced, it will have a very positive impact on the growth of man-made fiber consumption.

The draft said that future demand will tend to be man-made fibers and man-made fiber based textiles. Therefore, India should pay special attention to promoting the consumption and production of man-made fiber textiles.

At present, India man-made fiber accounts for 41% of domestic fiber consumption, while cotton accounts for 51%. In contrast, the proportion of global man-made fiber consumption to cotton is 60:40.