Garment manufacturers are upset with the government for imposing 10 per cent
excise duty on branded garments and made-ups like bed sheets and towels.
They have asked the government to roll back the duty for the benefit of the sector and to protect jobs.
Manufacturers said the sector is already reeling under the pressure of an erratic price hike in raw materials and the additional tax burden would ultimately kill the sector.
" Garment prices have already gone up by 25 per cent due to the effects of raw material cost and this additional levy of 10 per cent would kill demand and the government will be responsible," said Premal Udani, president, Apparel Export Promotion Council.
According to garment exporters the new provision would require them to get their factories registered and complete a lot of paperwork and formalities.
Garment makers will bear commercial losses as consumption levels would be hit due to the price rise.
The made-ups industry, which has become the leader in the exports markets with an annual exports earning of $2.5 billion, is set to take a hit due to the extra levy, a retrograde step for this business, players said.
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