Madhya Pradesh textile weavers pin hope on state Budget

Textile weavers in Madhya Pradesh have pinned hope on state Budget 2013-14, which would be presented by the Finance Minister this week.

Speaking to fibre2fashion, secretary of Madhya Pradesh Textile Mills Association (MPTMA), Mr. MC Rawat said, “We have urged for reduction of Value Added Tax (VAT) on all kinds of fibres from the existing 5 percent to 2 percent since all the neighboring states, including Maharashtra, have reduced VAT to 2 percent.”

“We have also demanded for the removal of entry tax on man-made fibres and finished products because it is increasing the cost of production of textiles and garments manufactured in Madhya Pradesh,” he informs.

He further says, “We have urged the state government for exemption of mandi tax on cotton, which is currently being levied at the rate of 1 percent and will end in November 2013.”

“While textile industries located in states like Gujarat and Rajasthan are not paying any mandi tax, Maharashtra textile units are paying only 0.6 percent as mandi tax,” he adds.