Machinery makers seek end of sops on second-hand imports

A demand to end fiscal sops on imported technology, particularly from China, has been made by the domestic machinery manufactures to the government in order to curb the unrestrained import of second hand textile machinery.

An expert cited that such an import of second-hand and low-priced Chinese looms is the biggest hurdle in country’s textile growth. A pre-budget memorandum submitted recently to the government by Textile Machinery Manufacturers' Association (TMMA) says that according to the planning commission, no subsidy should be offered to import any second-hand machinery.

In this regard, the association has recommended the Textiles Minister, Mr. Dayanidhi Maran to restrict the import of second-hand textile machinery, and subsidy under the Technology Up-gradation Fund (TUF) scheme should not be offered to such imports. It also suggested the removal of distortions in the excise duty structure in 2011-12 Budgets.

In addition to this, TMMA made further suggestions, including uniform rate of eight percent excise duty on all items of textile machinery as well as imposition of less than four percent taxes on parts, components and accessories in order to encourage its domestic textile machinery.

The industry has been held back by decades-old technology, which is less efficient, consumes more electricity and requires high maintenance. In the year 2008-09, around 1354 second-hand looms have been imported in India.

Original Source: Machinery makers seek end of sops on second-hand imports @ Fibre2fashion

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