Tirupur exporters unhappy with 2nd stimulus package

COIMBATORE: The exporters in the hosiery town Tirupur were disappointed with the second stimulus package announced by the central government on Friday. Tirupur Exporters Association (TEA) president A Sakthivel said the government had not considered their requests and called the package a total disappointment.

Mr Sakthivel said the exporters association requested a five-year tax holiday for garment exporters and two-year moratorium from the payment of term loan and interest. Further, the exporters asked for exemption from the payment of service tax and fringe benefit tax instead of giving refund of tax paid on few services.

Other requests included duty drawback rate for cotton knitwear garments to be increased to 12%, 7% packing credit interest across the board or increase in interest subvention by another 2% and increase in total interest subvention at 4% with retrospective effect from October 1, 2008.

Mr Sakthivel said if the government doesn���t consider the above measures then there would be not only loss in exports but also job losses. ���The major concern is that the pace of increase in job losses would be quickened in the forthcoming days,��� he added.