As India’s textile industry is set to grow in coming years, the government is considering a tax rate that would increase its corporate tax rate to 10% from the current 10%.
The increase in tax rate would be seen as an attempt by the government to curb its growing manufacturing base, which accounts for about a third of the country’s gross domestic product.
The government is also considering an increase in textile production quotas.
The levy will be levied on the wholesale and retail prices of the products of all the Indian textile manufacturers, as well as on the prices charged by the wholesale buyers and the retail buyers of the items.
The rate would also be applicable to the sale of goods produced by the textile manufacturers under an agreement with the government, the statement said.
The textile industry has been grappling with the growing cost of production and the shortage of skilled labour.
The industry is also grappling with increasing pressure from foreign buyers.
The rise in textile taxes in India is the second such tax increase that the government has introduced in recent years.
In 2016, the levy on the price of raw material (raw material price) was increased from 20% to 25%.
The government has also introduced a textile tax to curb the rampant black market in the country.