The cost of branded garments and made-up textiles will go up by 10-15 per cent with imposition of excise duties as proposed in the Budget. Readymade garments and made-up textiles are currently under optional excise duty regime. But Finance Minister Pranab Mukherjee today proposed in his Budget mandatory imposition of 10 per cent duty on this segment.
“Our garment and made-ups industry has come of age and has shown handsome growth in the recent years. As part of base expansion, I propose to convert the optional levy into a mandatory levy at a unified rate of 10 per cent,” Mukherjee said.
The provision is aimed at bringing the branded readymade garments under the excise net. Earlier, the excise duty on branded apparel was voluntary. But henceforth, the branded apparel manufacturer will have to compulsorily pay the excise duty of 10 per cent.