Apparel Exporters Seek Tax Incentives in Union Budget to Boost Shipments

Apparel Export Promotion Council (AEPC) on Saturday urged the government to announce tax incentives, including removal of a provision requiring payments to MSMEs within 45 days to claim deductions and customs duty exemption on garment machinery imports.

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The AEPC has also requested that an interest equalization rate of 5 per cent be announced in the Union Budget, scheduled to be unveiled on February 1.

Other demands include extension of concessional tax rate for new manufacturing units to encourage setting up of new garment units; simplification in the procedure of imports of trims and embellishments under IGCR (Import of Goods at Concessional Rate); and liberalizing e-commerce export procedures.