The manufactures say that this duty will result in 10 to 15 percent rise in the price of the product and ultimately hit the pockets of the consumer
Garment traders went on an indefinite nationwide strike on Thursday as they were disappointed by Finance Minister Pranab Mukherjee's proposed 10 percent excise duty in Budget 2011 on readymade garments.Companies located in North India went on an indefinite strike from Thursday, while the units located in South will join operations from Friday. Reacting on some relief to readymade garment manufacturers by raising the abatement available for levy of taxes on retail price of some branded garments and textile made-ups, Secretary General of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), D. S. Rawat said the textile and clothing industry is one of the largest employment generators in the country. Any additional burden on it at a time when global markets are still recovering from the impact of global economic slowdown would have hurt badly and left thousands of workers jobless.
Garment traders had criticized the proposed 10 percent excise duty on readymade garments, saying it would hurt small businesses. Under the revised norms, 10 percent excise will be levied on 45 percent of the tariff value of retail price on branded readymade garments as against 60 percent proposed in the original Budget proposal.
The manufactures say that this duty will result in 10 to 15 percent rise in the price of the product and ultimately hit the pockets of the consumer, who is not in a position to pay because of high inflation.