The South India Factory Association Asked The Government To Exempt The Value-Added Tax On Cotton Textiles.

2011/7/15 10:00:00 59

South India Factory Value-Added Tax On Cotton And Textiles

In July 14th, the Xun India factory Association (SIMA) today requested the government of Tamil Nader.

Cotton yarn cotton textiles

The value added tax is because the cotton textile industry is facing huge problems for four months due to the decline in cotton and yarn prices.

Thulasidharan, President of the South India factory Association, sent a letter to governor Kanu Nanni Di to apply for exemption from VAT, or to supply raw cotton and textiles from yarn to finished goods within two years.

Alternative ways

。

Thulasidharan said in its letter that the value added tax rate of raw cotton increased from 4% to 5%, which impeded the development of cotton.

Therefore, in order to ensure that the industry does not shut down again and to restore competitiveness in the open market, the government must be exempt from tax or optional tariffs.

In March, cotton prices in India's domestic market reached 62500 rupees / Candy (1 Candy =356 kg), and cotton prices rose to 40 thousand rupee / Candy.

As a relief measure, since May,

Cotton textile industry

Cut production.

At present, the spinning industry in India employs about 500000 people.