The textile clusters in Malegaon, Bhiwandi, Ichalkaranji and other
places of Maharashtra are expected to benefit from some of the
provisions made in the state budget for 2012-13 presented by the
Deputy Chief Minister and Finance Minister Ajit Pawar today.
While the tax exemption for the
textile sector other than those manufacturing furnishing cloth has
been declared as continued, the industry is also expected to
benefit from the electricity subsidy announced by the finance
minister in the budget.
"In the last year’s budget of the
Central Government, Textiles are removed from Schedule of
Additional Excise duty. Following this, some of the States have
levied VAT on textiles. However in Maharashtra it was exempted.
This year I propose to levy tax at 5 per cent on sales of
furnishing cloth at the last point of sales", finance minister
Ajit Pawar said in his budget speech.
"Maharashtra has a fairly large
textile processing industry. Last year, due to changes in
Additional Duties of Excise it became taxable. However, I propose
to exempt textile processing from tax", he added.
While announcing the electricity
subsidy for the powerloom sector, he said, "To promote power loom
industry in the state, subsidy in electricity bills is given to
power loom holders. For this, an outlay of Rupees 500 crore is
proposed for the year 2012-13."
The finance minister also said, "The
State Government has recently announced textile policy. Under the
new policy the additional interest subsidies have been proposed
for the projects selected under TUFS. This will provide great
impetus to the textile industry in the state. For this, an outlay
of Rupees 90.83 crore has been proposed for the year 2012-13."