COIMBATORE FEB 3
Reacting to the Union budget proposals 2020-21, Mr.Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA), Coimbatore, has thanked the Prime Minister for favourably considering the long pending demand of the industry and abolishing the anti-dumping duty being levied on Purified Terephthalic Acid (PTA) imported from different countries including China, Indonesia, Taiwan, Iran, Malaysia.
The PTA attracts anti-dumping duty from US$ 27 to US$160 per metric tonnes depending upon the country of origin and the country often faces shortage of PTA that curtail the capacity utilization of the polyester segment industry.
He has said that this announcement has come as a boost for the PTA users and the entire man-made fibre textiles & clothing segment. He has stated that this would greatly help the country to enhance the global competitiveness, boost exports and also enable the domestic manufacturers to compete with the cheaper imports Mr.Ashwin has said also welcoming the proposal of curbing cheaper imports by imposing Rule of Origin and other safeguard measures on the FTA countries.
Welcoming the announcement of National Technical Textile Mission by allocating Rs.1480 crores for the next four years, the SIMA Chief has said that he has said that as the country has been importing technical textiles to the tune of US$ 16 billion per year, this Mission would help the industry to strengthen the technical textile segment taking advantage of benefits already extended under different State Textile Policies and also the Technology Upgradation Fund Scheme.
He has also appreciated the enhanced allocation of Rs.761.90 crores for A-TUF Scheme as against Rs.700 crores allotted during the previous year. Mr.Ashwin has hailed the announcement of the Schemes for Remission of Duties & Taxes levied on export products and NIRVIK for extending competitive credit facilities and higher insurance coverage with lesser premium and also simplified procedure for claim settlements.
He has also welcomed the announcement of addressing inverted duty structure in the GST as textile industry has been suffering with huge accumulation of inverted duty of capital goods and certain services.
The various announcements made including the abolition of dividend distribution tax paid by the companies, significant reduction in the personal income tax rate, Vivad Se Vishwas scheme enabling dispute settlement without any interest and penalty, simplification of appeal provisions, GST returns, income tax returns, etc., are also the welcoming features of the budget, says Mr.Ashwin.