Ludhiana’s readymade garment makers today announced shutting down of operations for a day on March 4, perturbed by the latest budget proposal, making 10 per cent excise duty on branded apparels mandatory. The garment makers have also threatened closing down of units indefinitely, if the government does not review its decision.
In the latest Budget the Union Finance Minister Pranab Mukherjee proposed to convert the voluntary excise duty on readymade garments into a mandatory 10 per cent excise duty.
“The optional scheme for payment of excise duty on readymade garments and textile made up, which bear a brand name or are sold under a brand name would no longer be available. An excise duty at 10 per cent is being imposed on such goods without Cenvat credit facility,” the budget statement said.
