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Tax rate for TIER-I textile, leather retailers raised to 18% in FY25

Textile exports rise 11.27% YoY to $1.48bn in May
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June 12, 2023 (MLN): The TIER-I retailers in the textile and leather products sector will face a higher tax slab in the upcoming fiscal year (FY25) as the government has increased the tax rate from 15% to 18%.

This proposed tax rate will mainly apply to expensive and branded products textiles and leather.

The budget speech emphasized that this tax is being imposed on the class that can afford to buy these expensive items.

Moreover, it clearly mentioned that this hike would not affect the common man.

To elaborate on the textile industry's performance in Q1 2024, it is worth mentioning the sector grappled with challenges in both domestic and export markets.

Domestically, high energy costs, costly financing, and the imposition of government taxation escalated the cost of doing business.

Additionally, the global economic slowdown subdued demand for textile products in the international market. Accordingly, overall exports of the textile industry remained stagnant.

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Posted on: 2024-06-12T21:28:52+05:00