Referring to the 10 per cent excise levy on the branded apparel, Finance Minister Pranab Mukherjee has now proposed a revised 10 per cent excise duty on 45 per cent of the MRP for all the branded apparel, instead of an initial proposition of 60 per cent. This revision has failed to bring any relief to the retailer community.
It all started with the FM proposing for a mandatory imposition of 10 per cent duty on the ready-made garments and retail segment, which currently enjoys an optional excise duty regime.
Manjula Tiwari, COO, Esprit, said, “It is not a happy news since prices will rise and the volumes will be reduced with the soaring inflation rate.” Sharing similar sentiments, Akhil Chaturvedi, director, Provogue India, said, “It is a bad situation since the amount of tax to be paid will be too much. Ideally, there should be no excise at all.”
– IndiaRetailing Bureau