The government has exempted textiles and textile machinery
manufactured in India from the 0.05 per cent textile committee
cabinet approved exemption of all types of textiles and
textile machinery from the levy as part of efforts to
make exports competitive, information and broadcasting
minister P R Dasmunsi said.
exemption of textiles committee cess will rationalise
tax and cess burden on the sector in the changed scenario
of global competitiveness, thereby improving competitiveness
of Indian textile sector in global markets,'''' the minister
said after the cabinet meeting.
cess was meant to fund activities of the textile committee
that works for promotion of exports and research in technical
and economic fields. The textile committee, based in Mumbai,
has 30 regional offices, 19 of which are equipped with
The cess of 0.05 per cent of turnover imposed on textiles
and machinery collected Rs50 crore in 2005-06.
government had exempted garments from the cess last fiscal.
January, the government withdrew the levy on ready-made
garments, but retained it for other textile items.
country is aiming at a 16 per cent growth in textile sector
the next five years, from about 10 per cent in 2006-07,
with exports touching $55 billion by 2012.