The reduction of corporate tax to 25 per cent for companies with turnover upto Rs 250 crore will benefit textileand garment firms in Tamil Nadu, according to the Coimbatore based Indian Texpreneurs Federation (ITF). The textile body also welcomed the increase in budgetary support to the textile sector in the Union Budget 2018-19 laid in Parliament today.
“This Budget will infuse confidence among the medium-sized companies in India,” commented ITF convenor Prabhu Dhamodharan soon after finance minister Arun Jaitley finished his Budget speech.
Explaining the benefit of reduction in corporate tax, Dhamodharan said, “Majority of Spinning and apparel companies in Tamil Nadu are within the Rs 250 crore turnover bracket. So, the tax reduction to 25 per cent will give a direct benefit to us and it will help us to speed up our plans in solar investments to achieve self-sustaining status in our energy requirements.”
He also welcomed the 20 per cent increase in budgetary support to the textile sector, which has now increased to Rs 7,148 crore for 2018-19. He said that this will help the textile sector, as it will result in clearance of pending ROSL dues.
He hailed the proposed schemes to encourage bond markets in India, as it will help the Indian corporate sector to explore alternative financial options like bonds.
However, the major focus of the budget was development of the agricultural and rural economy. “Focus on agro sector is the need of the hour and this budget rightly focused on the same. The (new) budgetary supports may help in achieving more yield per hectare in cotton and more crop output will help Indian textile sector in the long run,” Dhamodharan said.