In the earlier budgets, the Government had decided and communicated that the rate of corporate tax which is currently @ 34.6 per cent will be brought down to 25 per cent in a phased manner to encourage the corporate sector. The same may be implemented for the welfare of the industry as a whole.
The deduction under Section 32AC of the Income Tax Act may be extended to all assesses and not restricted to companies alone.
The industry would like to see inclusion of cotton yarn under MEIS and IES benefits, extension of RoSL benefit for fabric, allocation of adequate funds to the ministry of textiles for releasing the TUFS subsidy within the given time frame to clear the arrears and also to meet the committed liability for the year 2018-19. Adequate funds may also be provided to clear the long pending TUFS subsidies of committed liabilities of over 9,000 cases as per the recommendations made by the Office of the Textile Commissioner based on the study report submitted by NABCONS.
Since the Centre has been strongly advocating investments in technical textiles, it is essential to revive around 79 nonwoven and technical textile projects listed as left out cases by providing necessary funds to revive these units from severe financial stress and create confidence in the minds of the investors.