To provide adequate protection to the domestic industry, and to incentivise domestic value addition and ‘Make in India’, finance minister Arun Jaitley today proposed to increase customs duty on import of silk fabric from the existing 10 per cent to 20 per cent. In his first Budget post-GST, Jaitley stressed on development of agricultural and rural economy.
The Budget proposes an increase in outlay for the textile sector. “The Government had approved a comprehensive textile sector package of Rs 6,000 crore in 2016 to boost the apparel and made-up segments. I, now propose to provide an outlay of Rs 7,148 crore for the textile sector in 2018-19,” Jaitley said in Parliament.
For incentivising the leather and footwear sector, Jaitley said, “Currently, a deduction of 30 per cent is allowed in addition to normal deduction of 100 per cent in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry. In order to encourage creation of new employment, I propose to extend this relaxation to footwear and leather industry.”
“Further, I also propose to rationalise this deduction of 30 per cent by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year,” he added.
The Budget also proposes increase in customs duty on footwear to 20 per cent from the current 10 per cent, and on parts of footwear to 15 per cent from the existing 10 per cent rate.