The Union Budget announced last Monday had imposed a 10% excise duty on branded retail, making branded apparels costlier by 10%-15% even as the government plans to introduce Goods and Services Tax (GST) by next year
Mumbai: Malls and branded apparel outlets across the country remained closed on Monday in response to a day-long strike called by retailers to protest the proposed 10% excise duty on branded apparels in the Union Budget. A trade association put the loss due to shutdown to around Rs500 crore, reports PTI.
"We estimate that the retail industry will lose around Rs500 crore due to the strike. The estimated loss from Mumbai alone is around Rs100 crore," Federation of Retail Traders Welfare Association (FRTWA) Secretary Viren Shah told PTI.
Major retailers such as Shoppers Stop, Pantaloon, Westside, More, SKNL, Arvind Brands, Provogue and Benetton among others, remained closed to press home their demand of a roll-back in the excise duty on what they described as "the already burdened garment industry."
There are over 10,000 branded retail stores in the country.
The government in its budget proposals last Monday had imposed a 10% excise duty on branded retail, making branded apparels costlier by 10%-15% even as it plans to introduce Goods and Services Tax (GST) by next year.
Branded apparels are defined as any registered or labelled garment with a turnover of more than Rs1.5 crore annually.
"The excise duty came as a surprise, especially as the government plans to introduce GST next year. However, I think the tax is just a pressure tactic of the government to make all the states accept GST," Mr Shah said.
The size of the garment industry is estimated at around Rs1,50,000 crore.
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