The Hindu : Tamil Nadu News : `Roll back excise duty on handloom fabrics'

Online edition of India's National Newspaper
Wednesday, Apr 14, 2004

Tamil Nadu

Tamil Nadu

`Roll back excise duty on handloom fabrics'

By Our Staff Reporter

CHENNAI, APRIL 13. Members of the Tamil Nadu Handloom Industry and Trade Association have called upon the Centre to roll back the 10 per cent excise duty on handloom fabrics.

Though the order was issued in April 2003 itself, the members came to know about it only last month, when excise personnel in Vellore range started asking weavers at Gudiyatham to remit the levy. The order is applicable to those weavers who do business for more than Rs. 25 lakhs.

Talking to presspersons here, the president, A.K. Syed, said the duty structure would contribute little to the growth of the handloom sector, which was already facing stiff competition from the powerloom industry and Chinese manufacturers. In 2005, when the World Trade Organisation (WTO) regime becomes operational, even Indian markets would be flooded with cheaper Chinese products, he cautioned.

An estimated five-lakh handloom employees would be rendered jobless by the government move. Already, weavers in Tamil Nadu were reeling under the two per cent sales tax on hank yarn, he pointed out. The honorary secretary, M.P. Radhakrishnan, said the notification came as a "surprise" as only a couple of weeks earlier officials categorically told the members that there was no move to introduce the duty.

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