Surat : Powerloom Weavers Rejoices as Finance Ministry Resolves Technical Discrepancy in Customs Duty Circular
Surat : The Finance Ministry has fixed a minor error in the government circular on the reduction of basic customs tax on imported machinery, as stated in the Union Budget 2023-24, much to the delight...
Surat : The Finance Ministry has fixed a minor error in the government circular on the reduction of basic customs tax on imported machinery, as stated in the Union Budget 2023-24, much to the delight of the powerloom weavers in Surat.
As a result of the change, the 8.25% tariff that had been levied on different imported powerloom machines running at 650 RPM, 800 RPM, and 1000 RPM has been reduced to zero percent.
In order to remedy this problem, the Surat powerloom weavers’ union had alerted the Textile Ministry and the customs office to the technical inconsistency in the circular. The disparity resulted in the confiscation of 700 three-panna Rapier Jacquard machines, capable of 650 Reels Per Minute (RPM), at the Mumbai port.
As the Union Minister of State for Textiles and Railways, Darshana Jardosh, voiced her displeasure with the initial Finance Ministry circular for the exclusion of 650 RPM powerloom machines from the zero customs tax band.
The Finance Ministry published a new circular that fixes the technical error immediately after the first one was distributed. The updated circular now includes shuttle-less Rapier looms operating at 650, 800, and 1000 revolutions per minute (RPM), all of which are free of customs charge.
Mayur Golwala, a senior leader in the powerloom business, praised the move, saying, “The government reduced the basic customs duty on imported machines, including rapier, water jet, and air jet, from 8.25% to nil.” Because the first circular did not identify the 650 RPM category, customs officials in Mumbai detained around 700 imported machines. We’re pleased the Finance Ministry caught this error, and we expect the powerloom weavers to get their customs money back shortly.
“Powerloom weavers in Surat can now look forward to an era of enhanced productivity and efficiency,” stated Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI).
