Govt considers tax exemption for Guj-denim producers

Tag : Polyester Denim

The denim industry of Gujarat will enter a new phase in itsbusiness operations if the State Government decides to exempt thedenim fabric manufacturers from entry tax on polyester texturisedyarn (PTY) of coarser count of over 3000 denier and super specialtystretch yarn made from lycra and spandex.

Although manufacturers had demanded for a complete withdrawal ofthe tax, the Government is still mulling over only an exemption.

Situation remains grim for these manufacturers who have to sourcethe yarn mainly from outside the state since there are no yarnmanufacturers of this specialty in Gujarat. They therefore ended uppaying an additional entry tax which was introduced by theGovernment to restrict outsiders from selling yarn in Gujaratmarkets to protect the local PTY industry.