Vijayawada: As the Central government levied 2 per cent excise duty on readymade garments in the 2016-17 Budget, the manufacturers said that the cost of the readymade garments would increase by five to 10 per cent in the retail market. Opposing the excise duty on readymade garments, the manufacturers already announced strike on March 17. They also explained that the Central government already imposed 2 per cent sales tax and 5 per cent value-added tax. Now with this additional 2 per cent excise duty there would be an additional burden on the industry.
The Apparel Manufacturers’ and Marketers’ Association members expressed fear that the excise department officials may harass them in the name of enquiries and arrests. Maintaining records would be a difficult task and involves extra clerical burden on each and every small unit, explained Mr G.V.S. Harischandra, president of AMMA. Mr Harischandra also said that if the businessman fails to posses the records, the excise officials have the authority to seize the goods and arrest him.
He also added that there is a provision of imprisonment. He explained that the readymade industry is running in loses and this excise duty would be an extra burden. On the other hand, the Central government excise department officials explained that the excise duty is applicable to only above Rs 1,000 readymade garments. They said that the poor would not be affected by this proposal. But, Mr Harischandra argued that even a pair of readymade trousers cost more than Rs 2,000 and a shirt costs Rs 1,500.
Meanwhile, the Vijayawada Vastralatha Association did not confirm its willingness to participate in the protest along with the readymade garment manufacturers. The leaders of the Vastralatha said that they would announce their decision on Wednesday on the strike call. After the new body was elected for the Vijayawada Chamber of Commerce, they would take their direction and move accordingly, said Mr Raghu Ram, member of the Vastralatha Association.
