Tiruppur Exporters’ Association (TEA) has welcomed the allocation of Rs 7,148 crore for textile sector in Union Budget 2018-19, presented by finance minister Arun Jaitley today. Out of total allocation, Rs 2,300 crore has been earmarked for Amended Technology Upgradation Fund Scheme (ATUFS) and another Rs 2,164 crore for Remission of State Levies (ROSL).
Welcoming the extension of corporate tax at 25 per cent to the companies with turnover up to Rs 250 crore in the financial year 2016-17, TEA president Raja M Shanmugham said it will be beneficial particularly to the medium enterprises.
He lauded the announcement on launching of flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage upto Rs 5 lakh per family per year for secondary and tertiary care hospitalisation and added that it will be beneficial to the employees in Tiruppur cluster also.
Shanmugham hailed the proposed amendment in the EPF to reduce women employees’ contribution to 8 per cent for first three years of their employment, against existing rate of 12 per cent.
According to Shanmugham, the actual requirement for apparel sector alone under ROSL till March 31, 2018 is around Rs 5,000 crore, calculated on average 3.5% of FOB value of garments from September 20, 2016 when ROSL scheme came into effect. The current allocation is far less than the required amount as madeups sector would also be given ROSL benefit out of the allotted amount.