Chidambaram promises tax breaks for textiles
Our Economy Bureau
22 December 2004
Replying to discussions on the supplementary demands for grants in the Lok Sabha yesterday, finance minister P Chidambaram also hinted at tax concessions for manmade fibres in the next budget and said the government was looking at "a helpful tax regime" for the sector.
"The textiles industry can take advantage of the assured tax regime and become competitive," Chidambaram said.
The textile ministry has already recommended the abolition of the textiles committee cess, changes in the duty structure for synthetic yarn and reduction in the customs duty for remaining textile machinery to 5 per cent.
Chidambaram also said the government would implement the Twelfth Finance Commission recommendations in letter and spirit. Stating that the centre wanted to build a co-operative federal system, he said, "We appeal to the states to make India a strong economy."