Draft India Fiber Policy Seeks To Eliminate Tax Difference Between Cotton And Man-Made Fibres

A senior official said that the Ministry of textiles in India will soon be submitted to the cabinet of the government. fibre The draft policy puts cotton and man-made fiber tax rates at a level.

Rita Menon, Minister of textiles, said: "we will submit the draft to the cabinet very soon, but of course it will not be until next month". "Rita,"

In the draft policy, the Ministry of textiles expressed concern about the historical differences in the tax rates of man-made fibres and cotton.

Although cotton is abolished of consumption tax, artificial fiber has a 8% tax burden. This difference is more obvious in the value chain.

Man-made fiber textiles have a 8% tax burden, but Cotton textiles There is a 4% optional tax.

The open policy draft said that as long as reducing the consumption tax on man-made and man-made fiber textiles, it could have a positive impact on the consumption of man-made fibers.

The draft said: "in view of future demand, it will be mainly based on man-made fibers. textile Therefore, we should pay special attention to promoting the consumption and production of man-made fibers in India.

The textile industry in India is worth 63 billion dollars, and the proportion of man-made fiber consumption is 41%, while the proportion of cotton is 51%. By comparison, the proportion of global man-made fiber to cotton consumption is 60:40.

The draft policy says that the trend of global fiber consumption may continue to tilt towards man-made fibers, because the growth of global cotton production will be limited because of the limited land planted with cotton.