Textiles should be kept in the lowest tax slab when goods and services tax (GST) comes into effect, say OP Lohia, chairman of Indo Rama Synthetics (IRISL), and vice-chairman and managing director of Filatex India Madhu Bhageria. They point out that the industry is going through a tough phase and needs a boost. Both, Lohia and Bhageria, recently met minister of state for textile Santosh Kumar Gangwar, who was briefed about the demands. It was stressed that the minister should ensure this industry is kept in the lowest slab of tax rates in the GST regime. The government plans to bring GST, which clubs all indirect taxes into one, from next year onwards.

Man-made fibre industry was hoping for a reduction in excise duty to 6 per cent down from 12.36 per cent. Rather, the rates were increased to 12.50 per cent instead. There was no allocation for the technical upgradation fund (TUF), though it was demanded by all textile industry associations, apart from lobbies like FICCI and CITI, the minister was told. It was mentioned that the budget did not have any major announcement for the sector despite the fact that it was going through a tough phase.

Lohia suggested focus on export of textile garments so that the entire value chain in the industry is benefited. He said MMF sector needs major attention from government. If enough focus is not given at this time, other countries like Vietnam, Bangladesh, Indonesia and Pakistan can overtake India. It was stressed that government should take steps to boost production capabilities of this industry.