The Hindu : Tamil Nadu News : Waive sales tax on cotton silk, Chidambaram plea to States

Online edition of India's National Newspaper
Tuesday, May 31, 2005

Tamil Nadu

Tamil Nadu

Waive sales tax on cotton silk, Chidambaram plea to States

Staff Reporter

`Centre will not allow textile sector to suffer on any count'

TIRUPUR: Union Finance Minister P. Chidambaram on Sunday appealed to States to exempt sales tax on cotton, silk and synthetic yarn used for garment exports.

Stating that the Centre exempted textile exporters from all taxes such as customs duty, excise duty, sales tax and export tax, Mr. Chidambaram said that it could not return what the State Governments had been imposing on the exporters.

Responding to the plea by Apparel Export Promotion Council chairman A. Sakthivel on increase of duty drawback rates at the UCO Bank's export and textile customers' meet here, he asked when the Centre did not impose any tax on exporters, how could it return the amount they had paid to State Governments.

While affirming that the textile sector was the favourite one for the Centre and it would not be allowed to suffer on any count, Mr. Chidambaram called the exporters to face the future with hope. "I am watching the performance of textile exports carefully on a weekly basis ... "

Pointing out that competition in the international markets was no more among the supplying countries but among the units, he said every unit should gear to face the competition.The textile sector also needed some bitter pills like the one given to the nationalised banks some years ago. "Now all the nationalised banks are profit-making and the net non-performing asset value has been going down below 3 per cent."

Reacting to a plea by South India Mills Association chairman Vijay Venkataswamy, he said he would consult the Commerce Minister on re-inclusion of wind turbine generators was eligible under the Technology Upgradation Fund Scheme.

Long-term vision

Earlier, speaking at a book release function, Mr. Chidambaram said there should not be a prolonged and inclusive debate on policy matters and economic reforms. If we there were had a long-term vision and firm thinking no body could stop us the country emerging as an economic super power.

"In a democracy a debate is necessary. China has a firm leadership and pushing the policy courageously. But, in India we are facing lot of hardships and delay in formulating a policy, then to enact the legislation. After getting the legislation passed with several amendments there was opposition to implementation."

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